Wednesday, March 16 2005 12:57 Hrs (IST) - World Time -

Isfahan (Iran): The Organisation of Petroleum Exporting Countries (OPEC) Ministers meet in Isfahan today (Mar 16, 2005) divided over a Saudi offer to increase oil production to meet an expected increase this year in global demand.

Saudi Arabia, the kingpin of the oil cartel, signalled yesterday that it could act alone, while ratcheting up pressure on fellow members to boost their production quotas immediately, rather than wait until later this spring.

"Uppermost in our mind is to satisfy the demand that is out there," Saudi Oil Minister Ali al-Nuaimi said, after predicting "a substantial rise (in demand) between the third and fourth quarter to the tune of two plus million barrels per day (bpd)".

When asked if the kingdom would act alone, he replied, "We have done many things in the past. We will do what we have to do."

OPEC Ministers gathering in the central Iranian oasis and ancient Persian capital of Isfahan will consider the Saudi demand that it raise its production ceiling of 27 million bpd by 500,000.

Kuwaiti Energy Minister and OPEC president Sheikh Ahmad Fahd al-Sabah said that the grouping, which produces around 40 per cent of the world's crude, would raise its member quotas but had yet to decide on the timing.

Most OPEC Ministers believe enough oil is currently being produced, despite the high oil prices of around $ 55 a barrel, though they are more concerned over oil demand in the second half of the year.