RPT US calls on OPEC to increase oil production UPDATE

RPT US calls on OPEC to increase oil production UPDATE

	Published : Tue, 13 Nov 2007 18:01 By : Agencies Print this Story

(repeating to clarify that update includes new quotes and background)

LONDON (Thomson Financial) - US Energy Secretary Samuel Bodman said on Tuesday he wanted the Organisation of Petroleum Exporting Countries, whose leaders meet this weekend, to increase oil production.

Asked on the sidelines of an energy conference here if he wanted the 12-member oil producers' cartel to increase output, he replied: 'Yes, sure.'

'I do believe there is a lack of willingness to supply the market ... it is contributing to the price environment,' he told a press conference.

Oil prices had looked likely to break through 100 usd per barrel last week but have since fallen since leading OPEC member Saudi Arabia, a close US ally, signalled its willingness to discuss a possible output hike.

New York's main contract, light sweet crude for December delivery, slumped 2.36 dollars to 92.26 usd per barrel on Tuesday. Last Wednesday it had hit an historic peak of 98.62 usd.

In London on Tuesday, Brent North Sea crude for December delivery shed 1.35 dollars to 90.63 usd per barrel. At one point it fell under 90 usd for the first time since November 1.

Leaders from OPEC countries are to meet this weekend in the capital of Saudi Arabia, the world's biggest crude producer, for a rare summit.

OPEC produces about 40 pct of world crude supplies. It attempts to regulate prices by regulating the output of its members through a quota system.

At the last meeting of OPEC oil ministers, in Vienna in September, Saudi Arabia pushed through an increase in production despite opposition from the traditional price hawks Iran, Venezuela and Algeria.

OPEC leaders last met together in Caracas in 2000, the second such meeting after a 1975 summit in Algiers.

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