Oil prices remained at a record high level despite OPEC’s decision of increasing the production from November. The oil producers’ cartel held a meeting yesterday at its Vienna head quarters and in spite of some stiff opposition from Algeria, Libya and Venezuela, the Saudi proposal of increasing the crude oil production by 500,000 barrels per day was accepted.

US light crude futures fell slightly on the news to trade at around $77.20 a barrel, having earlier in the day pushed as high as $78.32, less than 50 cents below the record high of $78.77 set last month.

Dealers underline the fact that they are disappointed that Organization of Petroleum Exporting Countries output increase was small and delayed.

"It looks like it's going to apply some upward pressure to prices because there were some rumors they would increase it by 700,000 to 1m bpd," said Jim Ritterbusch of the US firm Ritterbusch & Associates.

According to the latest reports the Saudis were particularly concerned that steadily high prices would harm demand for oil and eventually overcame opposition from Iran and Venezuela.

"Our message to the consumer is that we care," Opec's secretary general Abdullah al-Badri said.

OPEC supplies about 40 percent of the global demand for crude oil. Its new output target is 27.2 million barrels per day, according to El-Badri. That statement acknowledges the estimated 900,000 barrels OPEC already was pumping over its former target of 25.8 million barrels a day.

OPEC President and energy minister for the United Arab Emirates Mohamed Al Hamli, said the cartel was concerned of what he called a "continuing uncertainties about the world oil demand outlook, exacerbated recently by financial markets turmoil."

"OPEC will continue monitoring oil market developments and will act in a timely and adequate manner, should there be indications of a shortage of crude," Al Hamli said.

The 12 OPEC members are Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela. Two of the - Iraq and Angola - are not bound by the cartel's official output quotas.