Opec on Thursday prepared to leave oil quotas unchanged and keep pumping near full capacity, rejecting a suggested supply cut by host Venezuela, the cartel's leading price hawk. The Organisation of the Petroleum Exporting Countries worries that $70-a-barrel crude could backfire on it by slowing global economic growth and fuelling investment in alternative energy.

Producing at its limits, Opec's leverage in world oil markets is limited. Refinery bottlenecks, Iran's standoff with the West over its nuclear programme, supply disruptions in Iraq and Nigeria and a rush by investors into commodities have fuelled the price of crude.

Saudi Oil Minister Ali al-Naimi said world oil markets were "oversupplied and overpriced." "At this price it is not possible for Opec to propose a cut," said Qatari Oil Minister Abdullah al-Attiyah.

Copyright Reuters, 2006