Sept. 8 (Bloomberg) -- The Organization of Petroleum Exporting Countries, which supplies a third of the world's crude oil, can raise production capacity by 1 million barrels a day by year-end, OPEC President Purnomo Yusgiantoro said.

The producer group's spare capacity is currently between 1 million and 1.5 million barrels a day, he said. Oil futures rose to a record $49.40 on Aug. 20 in New York amid concern about supply disruptions in countries such as Iraq, where insurgents battling U.S. forces in the country attacked export pipelines.

``OPEC is doing everything it can to restore order and stability in the market,'' Purnomo said at the World Energy Congress in Sydney. ``We are prepared to act at any time in the best interests of order and stability.''

Speculation added as much as $15 a barrel to the price, OPEC said in its most recent monthly report on oil supply and demand. Oil traded at $43.18 a barrel in after-hours electronic trading in New York, at 11:13 a.m. Sydney time.

To contact the reporters on this story: Sri Jegarajah in Sydney at sjegarajah@bloomberg.net

Last Updated: September 7, 2004 20:13 EDT