March 18 (Bloomberg) -- OPEC has no need to pump additional oil supplies to soften near-record prices, which are propped up by the weak U.S. dollar, Qatar's energy minister said.

``We are confident there is no shortage of supply,'' Abdullah bin Hamad al-Attiyah said in a phone interview from Qatar today. ``One of the reasons that the oil price is going up is because of dollar weakness. Every time the dollar goes down, oil goes up.''

Oil touched $111.80 a barrel yesterday, the highest since trading began in 1983. It rose as much as $1.59 and dropped as much as $6.98 during the session.

``Oil market fluctuations are due to speculation,'' the minister said. ``Even though a seasonal drop in demand is expected, there is no market reaction.''

Al-Attiyah said that the Organization of Petroleum Exporting Countries, which pumps 40 percent of the world's oil, has no reason to call an emergency meeting.

``There is no reason for OPEC to meet,'' he said. ``It should be something to do with supply. But there is no panic, no pressure to provide more barrels of oil.''

To contact the reporter on this story: Ayesha Daya in Dubai adaya1@bloomberg.net

Last Updated: March 18, 2008 06:52 EDT