Norway mulls oil production increase

OSLO, NORWAY - Norway will consider lifting its oil production restraints if prices remain too high, the country&#39;s oil minister said Wednesday. <br> <br> Norway, the world&#39;s third largest oil exporter after Saudi Arabia and Russia, has cut its oil production by 5 percent, or about 150,000 barrels per day, to help reduce oversupply and prices. <br> <br> However, oil prices have recently surged due to concern about conflict in the Middle East and Iraq&#39;s announcement on Monday that it was stopping its roughly 1.5 million barrel per day oil exports for 30 days or until Israel pulls out of Palestinian areas. <br> <br> Asked about Norway&#39;s policy in a regular question and answer session in parliament, oil minister Einar Steensaes said, ``If the price stays at an unacceptably high level, that would provide the basis for the government reconsidering production limits.&#39;&#39; <br> <br> Norway is not a member of the Organization of Petroleum Exporting Countries but often cooperates with its efforts to regulate the oil market. <br> <br> OPEC reduced production by about 1.5 million barrels per day in January to counter a price slump in an economic downturn that followed the Sept. 11 terror attacks on the United States. <br> <br> Norway currently produces about 3 million barrels per day from its North Sea fields. <br> <br> ``The government&#39;s goal to avoid extreme price swings,&#39;&#39; Steensnaes said in parliament. ``Both too high and too low prices had negative consequences. Only that has significance for the government&#39;s policy.&#39;&#39; <br> <br> He did not say when the government would make a decision about production levels. Oil prices fell nearly $1 per barrel to about $26 per barrel on Tuesday after market fears calmed.

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