Oil prices nearing 'acceptable' level - Opec

KUWAIT - Opec's president Sheikh Ahmad al-Fahd al-Sabah said on Saturday oil prices were approaching a level acceptable to both consumers and producers after recent decreases.

"The growth in demand has started to be less than before and we hope the prices will be (soon) ... acceptable to the consumer and the producer," Sheikh Ahmad, also Kuwait's oil minister, said.

Sheikh Ahmad said the Organisation of the Petroleum Exporting Countries was ready to tap its 2 million barrels per day (bpd) of spare production capacity if demand warranted.

"It (extra capacity) is ready whenever there is a call for it, but there has been no call for this 2 million barrels," he said.

Opec has agreed to offer the spare capacity, the lion's share of which is held by Saudi Arabia, from Oct. 1 for three months.

The 11-member producer group has been pumping nearly flat out at 30 million bpd for months in a bid to rein in prices.

But US crude has remained high due to concern about supply of refined products such as diesel and heating oil, rather than concern about the supply of crude oil.

Refiners were producing at near full tilt, but supply was hit by closures to plants due to Hurricanes Rita and Katrina.

- REUTERS