Saudi Arabia’s oil minister has said that the Opec producers’ group may hike output to meet rising demand for crude oil in 2011. Ali al-Naimi said during a conference in Saudi today that oil demand could rise by about 2 per cent this year. He said that, as non-Opec producers are preparing to increase output, Opec may boost their supplies to the global market to meet the rising global demand.

With the cost of crude nearing 100 dollars a barrel, any output increase could help rein back further price rises. Last week, the International Energy Agency, which advises countries on energy, said demand for oil was growing strongly. The IEA said that oil at 100 dollars a barrel was a risk to global economic recovery.