Opec agrees to raise production

Sunday, 12 January, 2003, 15:44 GMT news.bbc.co.uk

Venezuela's strikes have hit exports very badly

The oil producers' organisation Opec has agreed to increase production to try to stabilise the price of oil.

The cartel made the decision after four hours of talks at a meeting in Vienna in response to a sharp rise in world prices.

The main cause is the continuing strike in Venezuela, which has cut the amount of oil on the market by at least 2 million barrels a day.

The United Arab Emirates' oil minister told reporters that he and fellow ministers had agreed to fill the gap in world oil supplies caused by Venezuela's problems.

But he did not give any details of the size of the increase.

Before the meeting the leading Opec producer, Saudi Arabia, said the cartel was already filling the gap caused by the Venezuelan strike.

"There is no shortage. We never allowed the shortage to take place," said Saudi oil minister Ali al-Naimi.

Since mid-December the price of crude oil in both London and New York has been above Opec's target range of $22 to $28 a barrel.

More soon.