Oil producers are likely to boost production beyond targets, says new report

A key oil industry watcher said today that oil producers were likely to continue to boost production above the targets set at a gathering of OPEC members this week.

A key oil industry watcher said today that oil producers were likely to continue to boost production above the targets set at a gathering of OPEC members this week.

In a monthly report released today, the International Energy Agency said that high energy prices were bolstered by low oil stocks and uncertainty about producers' ability and willingness to provide additional supplies.

The agency's survey was released a day after OPEC members, meeting in Vienna, agreed to add 800,000 barrels to daily production at a time when the international outcry over skyrocketing fuel prices has mounted.

The agency said that raising output would likely make only a small difference in world markets because members of the Organization of the Petroleum Exporting Countries already are producing well above current targets. The group said the pattern was likely to continue.

"Producers will likely take it upon themselves to increase production in excess of formal targets," said the survey, which was apparently prepared before the Vienna meeting.

The group said that OPEC members, excluding Iraq, produced an average of 25.84 million barrels a day during August - 440,000 barrels per day above the figure set by OPEC at its ministerial meeting in June.

The survey said that oil stocks have been "stubbornly low" despite strong economic activity around the world. It said the problem stemmed largely from producers' move to restrain production in an attempt to boost prices that were low in 1998 and early 1999.