The Organization of Petroleum Exporting Countries (OPEC) on Wednesday decided to raise its crude output quota despite remaining disagreements among the cartel's member states and uncertainties in the world market.

Under the exertive push of Saudi Arabia, the OPEC ministerial conference on Wednesday adopted an immediate raise of its quota by 500,000 barrels per day (bpd) to 27.5 million bpd and authorized the president, after consultations with member states, to decide on an additional 500,000 bpd increase if the prices remain at the current levels or continue to rise.

The Saudi proposal of raising the ceiling was based on the prediction that the consumption in the fourth quarter would exceed the third quarter by more than 2 million bpd.

Some analysts pointed out that Saudi Arabia was the most enthusiastic advocate of the quota increase because it enjoyed the greatest spare production capability.

Other OPEC member states, including Algeria, Libya, Oman and Iran, had voiced disagreements on the Saudi suggestion, holding that the second quarter would witness a decline in demand as usual and, more importantly, the surging prices did not reflect the real supply-demand rate.

Meanwhile, many analysts, including Iran's OPEC Governor Hossein Kazempour Ardebili, claimed that the difficulty in the oil market was caused by factors beyond the cartel's reach and the increase of quota could do very little about that.

But with the Saudi insistence and its threat to raise oil production unilaterally, the quota increase was adopted by OPEC members in Isfahan, Iran.

Some delegates to the meeting pointed out that the cartel would certainly raise the quota, and the only questions would be when and how.

Following the ministerial conference which ended on Wednesday afternoon, OPEC announced the controversial decision in a statement, citing the rising demand and the souring world oil prices.

Kuwaiti Oil Minister Sheikh Ahmad Fahd al-Sabah, the current OPEC president, said that the cartel was to do everything it could to maintain stability of the market, stressing that OPEC had enough resources and production capability to meet the growing global demand.

"At full capacity, OPEC could reach a capability of 31 million bpd, which can ensure enough supply compatible with the robust economy," Sabah said.

While the delegates and analysts held cautious attitudes toward the measure, somewhat unconfident about its actual effects on the market.

Iranian Oil Minister Bijan Namdar Zanganeh said that oil market would receive a positive message in light of the OPEC decision, but pointed out "OPEC is not provided with all necessary mechanisms."

On the ground, the market turned out an ignoring reaction. World oil prices arbitrarily soared late Wednesday to a new record of above 56 US dollars a barrel, completely regardless of the OPEC wishful decision.