Oil output ‘could rise in weeks’

US crude oil prices hit a new record overnight, up 35 cents to $57.62 a barrel, despite signs the Opec oil producing nations could raise supply.

Opec’s president said on Monday talks had begun with its members on raising output by 500,000 barrels a day.

Nigeria’s presidential adviser on petroleum, Edmund Daukoru, said on Sunday the decision could happen within two weeks if prices stayed above $55.
We had suspended [discussions] for a period of time because of the decline in prices,” Opec President Sheikh Ahmad al-Fahd al-Sabah said.

“But now the reality of prices requires that we once again undertake communications for the purpose of consultations with the fellow Opec oil ministers… pertaining to the 500,000 barrel per day hike.”

In London, Brent Crude was trading at $56.51 early on Monday.

Opec last met in mid-March when it decided to raise oil production by 500,000 barrels a day.

At the time, it left open the possibility of raising production by the same amount between April and June. But this could now be brought forward.

Oil prices were boosted by a Goldman Sachs report on Thursday which said oil prices could enter a “super-spike”, rising toward $105.

In addition, a power failure at Venezuela’s large Amuay oil refinery on Thursday meant the plant had to shut its processing units, reducing oil supplies.

http://news.bbc.co.uk/1/hi/business/4407643.stm