Leading OPEC producer Saudi Arabia today called for a modest increase in cartel supplies that could help ease oil prices from near-record highs.
Saudi Oil Minister Ali al-Naimi, speaking ahead of a Wednesday meeting of the Organization of the Petroleum Exporting Countries, said the group should lift supplies by 500,000 bpd, two percent, to 27.5 million bpd.
The proposal is at odds with the wishes of others in the cartel, including the meeting's hosts Iran, who want output left unchanged.
"Saudi Arabia is of the opinion that OPEC's production ceiling should be adjusted upwards by 500,000 bpd during the forthcoming ministerial meeting," Mr Naimi said in statement over the official Saudi press agency.
The news saw oil prices ease. Benchmark US crude dropped about 50 cents to trade down 37 cents on the day at $54.06 a barrel.
Saudi Arabia appears to share the view held by many traders that another strong year of oil demand growth, led by China, could see renewed strain on OPEC supply capacity.
Mr Naimi, who rarely predicts future Saudi output policy, said Riyadh would need to tap its spare capacity of some two million bpd and raise supplies again later in the year.