Sept. 12 (Bloomberg) -- Record crude oil prices above $80 a barrel are ``troublesome,'' U.S. Energy Secretary Samuel Bodman said today.

Oil futures rose to $80.18 a barrel in New York after a report today showed a larger-than-expected drop in U.S. oil inventories. The rise in prices follows yesterday's announcement that the Organization of Petroleum Exporting Countries would increase production by 500,000 barrels a day.

The record prices underscore ``how vital it is that we lower energy costs, cut oil consumption and make America more energy independent,'' Senate Majority Leader Harry Reid, a Nevada Democrat, said in a statement today. ``Democrats are working to do just that while Republicans continue to pander to big oil companies.''

Bodman praised the decision by OPEC to increase output.

``They have made a step, in my judgment, in the proper direction,'' he told reporters today after giving a speech in Washington.

He declined to say whether the increase was sufficient or whether more are needed from OPEC, which is responsible for 40 percent of the world's oil supplies.

Supply Disruptions

Oil markets will still be vulnerable to supply disruptions even after the OPEC production hike, the Energy Information Administration, the statistical arm of the Energy Department, said today in a note.

``The market fundamentals, characterized by rising demand for OPEC oil and fairly low surplus capacity, should keep markets firm even with the planned increase in OPEC production,'' EIA said in its weekly report on petroleum.

Bodman said he does not control what the EIA puts out.

``We're not hurting for oil inventories right now,'' Bodman said. ``Things look relatively calm from my standpoint.''

The secretary said he has had a ``number of discussions with ministers from both OPEC and non-OPEC nations about keeping markets well supplied.''

To contact the reporter on this story: Tina Seeley in Washington at tseeley@bloomberg.net.

Last Updated: September 12, 2007 17:22 EDT