INFLUENTIAL MEMBERS of Opec, the oil cartel, are joining Saudi Arabia in raising output to cool soaring prices and allay fears of a supply crunch in the west.

The behind-the-scenes move by Kuwait, the United Arab Emirates and Nigeria reflects growing unease among Opec members over the threat to the global economic recovery from crude’s runaway rise amid the worsening crisis in Libya.

US oil prices increased to their highest levels since September 2008 on Monday, trading at an intraday high of $106.95 a barrel, as Brent, the European benchmark, hit a session high of $118.50. Gold jumped to a fresh record of $1,444 an ounce.

Industry officials said the production increase, expected by early April, would – together with an earlier rise by Saudi Arabia – almost make up the shortfall in supply from falling Libyan crude exports.

They said that Kuwait, the UAE and Nigeria were to ramp up their production by as much as 300,000 barrels a day in coming weeks. Riyadh has raised its output by about 700,000 b/d.

The surge in output is the result of both a policy decision that reduces the need for an emergency Opec meeting and oilfields coming back into production after maintenance.

The International Energy Agency, the western countries’ oil watchdog, estimates Libya’s oil production has fallen by about 1 million b/d, down two-thirds from a prevailing output level of 1.58 million b/d before the start of the crisis three weeks ago.

Traders voiced fears yesterday that the fighting in Libya was turning into a civil war.

“The oil markets are pricing in an extended Libyan shutdown of crude exports,” said Michael Wittner, head of oil research at Société Générale.

The Opec cartel, which controls 40 per cent of global oil supplies, is divided about the need to increase output.

While Saudi Arabia has responded quickly by pumping more oil and some members are now quietly following, others, including Iran and Algeria, oppose an increase and see no shortage of oil in the market.

“Opec is evaluating whether needs to meet or not,” Qatar’s oil minister, Mohammed Saleh al-Sada, told reporters in Doha.

The cartel has been debating in recent days whether to call an emergency meeting but has so far decided against it, officials said. – (Additional reporting by Andrew England in Benghazi)