Algeria, Venezuela and Libya expressed their resistance against a proposal to temper high oil prices by raising oil production at the Organization of Petroleum Exporting Countries meeting in Vienna.

Some Persian Gulf producers discussed over a proposal of raising OPEC quotas by 500,000 barrels per day at the meeting. According to Iraq's oil minister, Saudi Arabia, the biggest producer of the Persian Gulf, came up with the proposal.

“We don't support an increase as far as Algeria is concerned,'' Algerian Oil Minister Chakib Khelil stated today. “Right now we don't see sufficient evidence'' to justify adding more supply to the market.

Oil prices have risen 27 percent in 2007 after members of the OPEC curbed exports to drain inventories. Exxon Mobil Corp. and Royal Dutch Shell Plc, some of the world’s biggest oil companies, record higher profits from the current prices and bumper revenue are encouraging producing nations such as Russia, Kazakhstan and Venezuela to take greater control of their energy resources.

Oil ministers from OPEC's 12 member nations are gathered at the group's Vienna headquarters for talks. The press conference will take place at 4 p.m. local time.

The major oil consuming countries with the US at the helm, would certainly like the announced increase in production.

On the other hand, Opec officials argue that the main causes for high oil prices are linked with the refinery bottlenecks and speculative money in the oil market with the result that any increased output would be stockpiled rather than directly meet consumption needs.

Another factor is the weakened dollar, in which oil is priced. Mohammed bin Dhaen Al Hamli, UAE Oil Minister and OPEC President, argued that when adjusted for inflation, and the dollar's lower value in forex markets, the cost of a barrel of oil is no higher than it was 30 years ago.