The Organization of the Petroleum Exporting Countries (OPEC) chief said Monday that the cartel will mull an output increase in the September meeting to rein in soaring oil prices.

"We will try in the next meeting to increase our production in the next quarter of the year. I think it's the right time to try to refresh our dialogue with consumers," Sheikh Ahmad Fahad Al-Sabah, also the Kuwaiti energy minister, was quoted by the Kuwait News Agency as saying.

"I will submit a proposal to the next OPEC meeting to increase both production and ceiling by 500,000 barrels per day (bpd) to stabilize the market," he said.

The 11-member cartel chief also denied the current oil price hike is caused by a stretched supply market.

"OPEC today produces 30.4 million bpd and there is a surplus in the market estimated at over two million barrels," Sheikh Ahmad said.

"We still believe we have extra energy production in some of our countries, particularly the Kingdom of Saudi Arabia," said Sheikh Ahmad.

The energy minister pointed out that "other factors like geography-politics, weather and refining" are the driving forces behind the price increase.

"This is something we can not do individually as OPEC, but can do jointly with consumers and producers," he added.

Oil futures on the New York Mercantile Exchange soared to 70.8 dollars a barrel on Monday, beating the previous record of 68 dollars set last week.

The price hike came after producers and refiners shut down operations ahead of Hurricane Katrina, which is measured as one of the strongest storms ever to threaten the United States.

Source: Xinhua