OPEC output rise likely next week: Report

The Organization of Petroleum Exporting Countries (OPEC), which sees little hope of cooling down price hikes that seem to be shot up by refining constraint, is looking at a new output rise, the Financial Times reported Tuesday.

"We could see prices rise up to 65 US dollars if the strike (in Norway) goes ahead," the paper quoted Deborah White, a senior energy economist at Societe General in Paris, as reporting.

The threat of an oil workers' strike in Norway, the world's third largest oil exporter, deepens market worries about the lack of refining capacity.

The oil price rising to almost 60 dollars a barrel forced OPEC to consider a new increase in output ceiling, less than one week after it increased production by 500,000 barrels a day to 28 million barrels a day, the paper said.

OPEC's President Sheikh Ahmad Al-Fahad Al-Sabah said on Monday "if oil prices continue to rise or maintain current levels until end of this week, I will consult with my colleagues" to pump extra half a million barrels.

The Financial Times report said the decision on production rise could be made as early as next week.

Energy analysts interpreted OPEC's comments to mean the cartel was "unable" to reduce oil prices since even if it increased supply, the price might continue its rising trend as the bottle neck lies in the refining capacity, the paper said.

"With no obvious supply-side constraint on oil price rises, only a collapse in demand growth can offer the necessary downward pressure," said the Center for Global Energy Studies, an energy research group.

Benchmark US crude futures hit 59.23 dollars a barrel on Monday and are priced to remain above 60 dollars from September to April. (*)