LONDON, June 2: Red-hot oil prices cooled slightly on Wednesday after Opec kingpin Saudi Arabia promised to boost output to bring down record high prices, though traders remained sceptical of its chances of success.

Saudi Oil Minister Ali al-Nuaimi said ahead of an Opec meeting in Beirut the oil-rich kingdom was "fully ready" to increase oil production in an effort to return prices to Opec's target range of $22-28 a barrel.

Ministers from Organization of Petroleum Exporting Countries gathering in the Lebanese capital for a formal meeting on Thursday are under heavy pressure from the United States and European nations to open up the taps.

European Union finance ministers expressed concern that skyrocketing oil prices could jeopardize Europe's fledgling economic recovery, calling on Opec again to act to calm the market.

Even before the meeting, the United Arab Emirates said it would increase oil production this month by 400,000 barrels per day (bpd) over its Opec quota, according to the UAE state news agency WAM.

Algerian Energy Minister Chakib Khelil even proposed suspending Opec production quotas "for a period of time", though Kuwait and Qatar said they opposed such a move.

With Opec preparing to open the taps, the price of benchmark Brent North Sea crude oil for delivery in July fell by 68 cents a barrel to $38.40 in late afternoon deals in London.

New York's light sweet crude contract for delivery in July dropped 93 cents a barrel to $41.40 in early deals. The US crude oil price on Tuesday had surged $2.45 to a record closing level of $42.33 a barrel in New York. Adjusted for inflation, however, prices remain well below levels seen during the oil shocks of the 1970s.

Prices rocketed after 22 people, including 19 foreigners, were killed in a weekend attack and hostage taking at oil company offices and a housing complex in the eastern Saudi city of Al-Khobar. - AFP