”Never doubt what Saudi Arabia says..”

By Barbara Lewis and Andrew Mitchell

AMSTERDAM (Reuters) – OPEC (news – web sites) on Saturday expressed “deep concern” about rising world oil prices, saying it wanted to cut fuel costs to support world economic growth.

By Barbara Lewis and Andrew Mitchell

AMSTERDAM (Reuters) – OPEC (news – web sites) on Saturday expressed “deep concern” about rising world oil prices, saying it wanted to cut fuel costs to support world economic growth.

But Organization of the Petroleum Exporting Countries President Purnomo Yusgiantoro said a decision on raising supplies would wait until a full meeting in Beirut on June 3.

Informal talks in Amsterdam made no recommendation on a Saudi proposal to lift quota limits by at least 8.5 percent, two million barrels a day, to topple U.S. crude prices from $40 a barrel.

Producers face heavy pressure from big petroleum importers who fear rising energy costs could brake strong economic growth.

Ministers from the Group of Seven top industrialized nations, meeting this weekend in New York, have said they want swift OPEC action.

Acting unilaterally, Saudi Arabia is not waiting until Beirut to help out.

Saudi Oil Minister Ali al-Naimi said on Friday Riyadh had already decided to raise output to nine million barrels daily next month, up from about 8.3 million bpd in April.

World oil prices eased on news of the Saudi plan, U.S. crude ending Friday trade off 87 cents at $39.85 a barrel, the first close below $40 in 10 days.

Naimi said Saudi could open the pumps even further if necessary, giving an assurance that Riyadh was capable of reaching a maximum of 10.5 million barrels daily.

“Never doubt what Saudi Arabia says,” Naimi told reporters.

Other OPEC members, already pumping at full capacity, are expected to fall in line with Riyadh’s proposal.

Number two cartel producer Iran said it will not oppose the plan, but warned that factors beyond OPEC’s control were driving oil prices.

“I don’t object to it,” Iranian Oil Minister Bijan Zanganeh told Reuters. “It’s good to send a signal to consumers … but not everything is in our hands.”

Purnomo said refinery bottlenecks, geopolitics, rising world demand and heavy speculation on crude futures by investment hedge funds have combined to drive up oil prices.