They raised output quotas by 500, 000 barrels per day immediately and promised a further, similar increase if prices remained above recent levels.

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The Organization of Petroleum Exporting Countries (Opec) meets on Saturday to discuss its official production quotas, although analysts believe output will remain unchanged.

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OPEC's high reserves, low production-to-reserves ratios and a propensity not to adhere to volume quotas, make a drive for higher market share through higher output and lower prices a logical outcome to their current dilemma.

ECONOMIST: Menem replies