VIENNA, Sept 15: Opec on Wednesday officially declared it will raise its production quota by one million barrels per day from November 1 and convene an extraordinary meeting in two months' time in Cairo.

"The conference decided to raise the Opec production ceiling, excluding Iraq, by one million barrels per day with effect from November 2004 in order to bring prices down further to a more sustainable level," Opec spokesman Omar Ibrahim told a news conference in Vienna.

The decision will raise the ceiling to 27 million barrels daily, still some one million barrels less than actual production, and had little immediate impact on oil prices.

The Organization of Petroleum Exporting Countries would also monitor market movements, the spokesman noted, speaking from a statement. A surge in oil prices this year was due to increased demand led by the United States, China and Asian countries, coupled with political unrest and concern about supply, Ibrahim said, adding that speculators had also driven the market higher.

"In taking this decision the organization reiterated its commitment to take action to stabilize the market at prices reasonable to both producers and consumers," the spokesman said.

In the current climate, Opec decided to hold an extraordinary meeting on December 10 in the Egyptian capital where it would study its price band of $22 to $28 a barrel. Some members feel the band should be adjusted upwards to better reflect the market reality, which has seen oil skirt around $40 to $45.

Meanwhile, oil prices charged ahead for the third day in a row on Wednesday on news of a plunge in US crude oil stocks and a slump in production in the Gulf of Mexico because of Hurricane Ivan.

Markets were unmoved by Opec decision to raise its daily output ceiling by one million barrels, a move analysts said would have no impact on actual supply. New York's main contract, light sweet crude for October delivery, climbed by 56 cents to $44.95 in early deals.

The price of benchmark Brent North Sea crude oil for delivery in October rose by 25 cents to $41.98 in late afternoon trading in London. Crude oil inventories in the United States tumbled by 7.1 million barrels to 278.6 million in the week to September 10, reaching the lowest levels in nearly seven months, the US Energy Department reported. The figures were "extremely bullish," said Societe Generale analyst Deborah White. -AFP