OPEC oil ministers have said there is enough oil on the market and that they may not need to increase production, even if war begins in Iraq. They were speaking ahead of a meeting of OPEC ministers today.

But Organization of Petroleum Exporting Countries President Abdullah bin Hamad al-Attiyah, of Qatar, said the 11-nation cartel would still "send a very strong message to customers that OPEC will do all it can do to stabilise the oil market if the market needs it in reality".

As for oil prices spiking to the mid-30 dollars per barrel range, Mr bin Hamad said: "I use to say [the prices included a war premium of] four dollars per barrel" but that now this premium was between six and seven dollars a barrel. The OPEC recommended production price is $22-$28 per barrel. OPEC ministers are expected to agree to maintain the cartel's overall output ceiling of 24.5 million bpd, rolling over a 6.5-per cent increase introduced at the start of February to compensate for disruption to supplies from strike-hit Venezuela.

In London, oil prices rode up to a new two-and-a-half-year high yesterday before falling prey to profit-taking, as efforts by OPEC energy ministers to try to mollify the war-wary market fell on deaf ears. - (Reuters)