The oil cartel, which convenes on Tuesday, ‘will be discussing if there is a need to increase its production slightly to meet the increased demand,’ Shahristani told reporters in the United Arab Emirates.

Shahristani, speaking on the sidelines of an ‘Iraq Petroleum 2007’ conference, said that while oil supplies are currently sufficient, ‘there is a capacity in OPEC to increase its supply to the market as is needed.’

Despite recent price spikes, most analysts do not expect OPEC to raise its production quotas during the meeting in Vienna.

‘The price will always be determined by the supply and demand formula. Currently it is on the upper side,’ Shahristani said, adding that he would head to Austria after the three-day conference in Dubai.