OPEC ministers look ready to agree today on the oil cartel's largest increase in production quotas in 15 years. Some members are even backing the suspension of the whole quota system.

Either way, the decision will provide diplomatic cover for Saudi Arabia, Kuwait and the United Arab Emirates to pump as much oil as they can on to the market in a desperate attempt to cool the soaring oil price.

The ministers are expected to approve an increase in the output ceiling of at least 2.5 million barrels per day (b/d) over the current self-imposed quota of 23.5 million b/d, which would reflect the cartel's current production level. This would be the largest increase since OPEC raised the quota by 3.4 million b/d in the first half of 1989.

"The 2.5 million b/d has already been factored in, so I think the market would expect more from OPEC," said one person close to the group. The ministers are also likely to agree to meet again next month, possibly in Vienna, to review today's decision.

Oil prices eased yesterday from the record peaks reached on Tuesday, with US benchmark crude futures dropping 88 cents to $41.45 a barrel in early afternoon New York trade from its record close of $42.33 in the previous session.

With most OPEC countries already producing at maximum capacity only Saudi Arabia, Kuwait and the UAE have the ability to boost production. The three countries say that between them they could pump another two million b/d if stretched to capacity.

Mr Khelib Chakib, the Algerian oil minister, called yesterday for OPEC to suspend the quota system altogether. However, any such suspension would loosen the organisation's control of production by its members, which may be harder to pull into line if quotas are later resumed.