The country's new, ambitious targets are more than 2 million barrels of oil per day and more than 85 cubic meters of gas by 2010, the Tehran Times reported.

Energy and Mines Minister Chakib Khelil said Algeria currently produces 1.4 billion barrels and 62 billion cubic meters per day. Khelil, current president of the Organization of Petroleum Exporting Countries, also said three new refineries are scheduled for construction.

Khelil said that the 13-member OPEC is expected to raise its annual output by 5 million barrels per day by 2012, from 32 million to 37 million. The current output represents about 60 percent of world output.

As fast-growing nations like Algeria, Libya and Saudi Arabia continue to grow, so will the total oil output of OPEC, he said.

Against other OPEC members, Saudi Arabia has said that it will increase its oil output

After renewed requests from U.S. President George Bush, Saudi leaders agreed to increase production to the highest level in two years.

Production will increase by 3.3 percent to 9.45 million barrels per day.

"In the future, if the need appears, Saudi Arabia has no objection to producing more," said Oil Minister Ali al-Naimi.

The extra production is intended to alleviate some of the pressure on oil prices, Middle East Business Intelligence reported.

Despite the news, U.S. investment bank Goldman Sachs has forecast that the oil price would average $141 a barrel for the second half of this year. And the Organization of Petroleum Exporting Countries still will not hold an emergency meeting before September.

Iran and Qatar will not follow Saudi Arabia's lead and increase production, the Fars news agency reported.

Oil ministers in Qatar and Iran have reiterated their belief that the world has enough oil, suggesting beside Saudi Arabia, it is unlikely that other taps will be opened to help reduce prices.

"The oil market is balanced. There is no threat to or crisis in supply," said Qatar's Abdullah bin Hamad al-Attiyah. "I don't think there is a situation that is big or dangerous that requires a meeting before September."

Iranian Oil Minister Gholamhossein Nozari said he also did not see any need for an emergency meeting of OPEC member states and expected crude prices to rise with the weakening of the U.S. dollar.

PetroChina has said it resumed oil supply in areas hit by the earthquake in Sichuan province

Following the quake many refineries, fuel stations and pipelines were temporarily shut down.

China has been releasing oil products from state reserves to guarantee sufficient fuel supplies for ongoing rescue work in Sichuan province, the National Development and Reform Commission said.

The State Reserve Bureau reportedly released 6,313 tons of oil products from state tanks for transport to quake-affected regions, and there are plans to release more.

The NDRC approved the release of 10,000 tons of jet fuel from its strategic reserve depot in Guizhou province, and China National Aviation Fuel Holding Co. will deliver jet fuel output from its Lanzhou and Urumqi refineries to Sichuan.

The president of PetroChina said last week that there were only enough gasoline inventories in Sichuan to last about five days.

The Lanzhou-Chengdu oil product pipeline, which supplies more than 70 percent of Sichuan's fuel, was pumping about 15,000 tons a day at the end of the week and is close to the capacity it held before the quake struck.

Eight gas stations had their operations restored over the weekend, Xinhua reported, and 21 more supply trucks are expected to arrive in the area today, according to PetroChina.

--

Closing oil prices, May 19, 3 p.m. London

Brent crude oil: $124.13

West Texas Intermediate crude oil: $127.09

--

(e-mail: energy@upi.com)