Thursday, March 24 2005 09:25 Hrs (IST) - World Time -

Kuwait City: Oil and Petroleum Exporting Countries (OPEC) president Sheikh Ahmad Fahd al-Sabah said he was holding consultations with cartel Ministers about market situations but ruled out any imminent increase in production.

"The president, who is authorised to raise production by 500,000 barrels per day (BPD), is currently holding consultations with other Ministers," Sheikh Ahmad, who is also Kuwait's Energy Minister, told reporters yesterday (Mar 23, 2005).

"But we believe time has not come to raise production. Today (Mar 24, 2005) prices dropped and we believe there is enough supply on the market," he said.

World oil prices dropped by more than $ 1 yesterday as large rises in US crude inventories offset bigger than expected falls in gasoline stockpiles.

New York's main contract, light sweet crude for delivery in May, fell $ 1.33 to $ 54.70 a barrel in early deals. The contract has shed almost $ 3 in two days.

In London, the price of Brent North Sea crude oil for delivery in May shrunk $ 1.14 to $ 53.45 a barrel, after a fall of more than $ 1 on Tuesday (Mar 22, 2005).