June 12 (Bloomberg) -- OPEC President Chakib Khelil ruled out the possibility that the oil-producer group will raise output to curb record prices when it meets with consuming nations in Saudi Arabia later this month.

``Supply is more than enough, there won't be a change,'' Khelil said in an interview today in Algiers, rejecting U.S. arguments that supply and demand, rather than speculators, are behind the surge in oil prices to more than $130 a barrel.

Record oil prices can also be pinned on Israel's threat to attack Iran if the Islamic Republic continues its nuclear- development program, as well as dollar weakness that's led investors to buy commodities as an inflation hedge, Khelil said.

Khelil's views echoed those of the oil ministers of Iran, Venezuela and Libya this week. Top oil exporter Saudi Arabia, which described higher prices as ``unjustified by market fundamentals,'' called a summit that will take place on June 22 in Jeddah to discuss how to deal with soaring prices.

``Every single government is now under pressure because of energy and food prices,'' U.K. Prime Minister Gordon Brown told a press conference in London today. ``People's standard of living has been affected by this. That's why the dialogue with oil producers is essential.''

Brown, U.S. Energy Secretary Samuel Bodman, the International Energy Agency, OPEC ministers and banks will all attend the summit.

No Shortage

Goldman Sachs Group Inc. and Morgan Stanley forecast that prices may reach $150 a barrel this summer. Khelil, who's also Algeria's oil minister, said if this level is reached, it would be the work of ``speculators'' not a shortage of supply.

``The reason we are looking at these very high prices for oil is strictly supply and demand,'' Bodman said yesterday. ``Their view is that it's all geared to speculation and I differ with them.''

Libya's leader Colonel Muammar al-Qaddafi blamed ``America's wars'' in Iraq and Afghanistan for sending oil prices to all-time highs. ``America is responsible,'' Qaddafi said in a speech in Tripoli published yesterday by state-run news service JANA.

The Organization of Petroleum Exporting Countries, which supplies more than 40 percent of the world's crude oil, won't consider changing its output target before its next meeting on Sept. 9 in Vienna, Khelil said. He said he will discuss the rising cost of production, which tripled in two years, at the summit.

Crude for July delivery rose 0.5 percent to $137.04 at 2:52 p.m. local time in New York, after earlier losing as much as 3.5 percent. Oil touched a record $139.12 a barrel on June 6.

Ending Subsidies

Oil prices have more than doubled in a year, curbing consumption as motorists drive less and airlines scale back routes. Emerging economies including India and Indonesia are raising domestic prices to rein in use of subsidized fuels.

The world is facing an ``oil crisis,'' Nobuo Tanaka, the executive director of the International Energy Agency, a Paris- based organization that advises oil importing countries, said yesterday. The IEA is ready to release emergency stockpiles in case of a ``major disruption'' of supply that would send prices higher, he said.

Supply is exceeding demand by 500,000 barrels a day, Khelil said in reply in today's interview. ``Algeria and Iran are not finding customers for their oil.''

OPEC doesn't need to raise oil output because the global markets are ``saturated,'' Gholamhossein Nozari, Iran's oil minister, was cited as saying by state-run Islamic Republic News Agency today.

Finding Customers

``Iran and Algeria are not finding customers for their heavy grade oil, light crude is in big demand,'' said Robert Montefusco at Sucden U.K. Ltd. in London. ``OPEC's ability to act appears limited. Saudi Arabia has a possible spare capacity of 1 to 1.5 million barrels a day, but the majority of that is probably heavy crude, while the demand is more for lower-sulfur sweet grades that are preferred by the refiners.''

Saudi Arabian Oil Minister Ali al-Naimi said last month, when U.S. President George W. Bush was visiting, that the kingdom would raise output by 300,000 barrels a day in June in response to rising demand from its customers.

Saudi Arabia is also expected this year to bring on new production from its Khursaniyah field, which will eventually pump 500,000 barrels a day.

OPEC's crude production rose 0.9 percent in May to 32.28 million barrels a day as Saudi Arabia and Iraq boosted supply, according to Bloomberg estimates. The 12 OPEC members with quotas are pumping close to their collective official ceiling of 29.673 million barrels a day. War-torn Iraq is allowed to produce at will.

The group left its official production targets unchanged at its last three meetings, in March, February and December.

Qatari Energy Minister Abdullah bin Hamad al-Attiyah confirmed today by phone that he would attend the Jeddah summit.

To contact the reporters on this story: Ahmed Rouaba in Algiers at arouaba@bloomberg.netMaher Chmaytelli in Vienna at mchmaytelli@bloomberg.net

Last Updated: June 12, 2008 14:59 EDT