June 2 (Bloomberg) -- OPEC should pump oil at will in the next few months, Qatar's energy minister said as the group's president called for efforts to cause a ``significant'' drop in record oil prices.

Saudi Arabia, the world's biggest oil exporter, will ensure markets have enough supply, said the nation's oil minister, Ali al- Naimi. The Qatari minister, Abdullah bin Hamad al-Attiyah, said OPEC is near a consensus to boost its output quota by 2.5 million barrels a day, or 11 percent, a plan also backed by Kuwait.

``Everybody should produce what they want over the next few months,'' al-Attiyah said in an interview in Beirut, where OPEC meets tomorrow. ``We do not want to see any shortage of supply at all, and we want to avoid shocks.''

Members of Organization of Petroleum Exporting Countries outside of Saudi Arabia are producing as much oil as they can in a bid to prevent higher energy costs from damaging a recovery in the world economy. Canadian Prime Minister Paul Martin said the Group of Eight nations should lobby OPEC for more oil.

Concern of potential attacks on Middle East oil installations and of U.S. gasoline shortages have inflated prices by $10 a barrel, the Qatari minister said. Crude oil was at $41.83 a barrel in New York, down 50 cents, after reaching a record of $42.45 earlier in electronic trading. Brent crude slid 60 cents to $38.48 a barrel as of 11:31 a.m. in London.

Higher Quotas

An increase in the quota to 26 million barrels a day would effectively allow members pump whatever they like, since most of the group is operating at full capacity. Normally, OPEC agrees to restrain supplies to prevent prices from falling.

Violence is rising in the Middle East, increasing concern about the security of oil supplies from the region. As many as two gunmen today opened fire on U.S. citizens in southern Riyadh, Arabiya television reported. On Saturday, terrorists attacked a compound that houses foreign oil workers in Khobar, Saudi Arabia, killing 22. Last month, five ABB Ltd. employees were killed at a petrochemical plant in Yanbu, Saudi Arabia.

Saudi Arabia has raised oil output to 9.1 million barrels a day, a Persian Gulf oil official said yesterday. That compares with Saudi assessments of capacity of 10.5 million barrels a day. Outside estimates say the limit may be 10 million.

Ministers from Kuwait, Indonesia and the United Arab Emirates have also called this week for more supply. Today in Beirut, delegates from Nigeria, Iran, Venezuela and the United Arab Emirates are scheduled to arrive.

`Still Strong' Prices

``What we need is a volume that can have a really significant impact'' on oil prices, OPEC President Purnomo Yusgiantoro of Indonesia said in Beirut. Yet ``the price is still strong.''

Later today, the Ministerial Monitoring Committee, a subgroup including delegates from Nigeria, Iran, Kuwait and OPEC's headquarters in Vienna, is scheduled to meet and recommend a course of action to the ministers.

The United Arab Emirates oil minister, Obaid bin Saif al- Nasseri, yesterday said his nation is pumping 2.45 million barrels a day, 400,000 above its OPEC quota and at the nation's limit. The United Arab Emirates cannot produce any more oil until its infrastructure is expanded, he said.

Ministers yesterday said security around Middle East oil installations is increasing, seeking to allay concern among traders of threats to production. At the gathering in Beirut, the Lebanese army provided security and sharpshooters were placed on buildings surrounding the ministers' hotel.

Price Target

Saudi Arabia's al-Naimi in Beirut said his nation wants to keep prices between $22 and $28 a barrel for the OPEC price benchmark. OPEC can't always control prices, and Saudi Arabia plans to ensure demand is always met, he said.

``We know the price is high, but we can assure you the kingdom and the other producing countries do not want a price that can reduce economic growth,'' al-Naimi said. But ``OPEC cannot always control prices.''

Saudi Arabia on May 21 announced an increase in production and suggested the group's target rise by at least 2 million barrels a day, or 8.5 percent. OPEC president Purnomo and ministers from Qatar and Kuwait have said the group won't formally suspend its system of oil quotas.

OPEC ``has to'' maintain the quota system, al-Attiyah said. ``When it comes to cutting production some time in the future, you have to have a quota in place or else everybody will come back with unrealistic production levels.''

Crude oil futures in New York are 37 percent higher than a year ago, in part because of refining bottlenecks and speculation of potential gasoline shortages in the U.S. Iraqi exports have failed to reach prewar levels because of persistent attacks against pipelines, refineries and other infrastructure.

To contact the reporter on this story: Stephen Voss in Beirut through the London newsroom at tcoulter@bloomberg.net.

Last Updated: June 2, 2004 06:48 EDT