Oil prices retreated yesterday after the OPEC president put the cartel on stand-by to lift supplies by half a million barrels per day.

International benchmark Brent crude for September delivery was off 63 cents or 2 per cent at $28.60 (€30.59) per barrel by late yesterday and US light crude lost 65 cents to $30.75.

In an official statement made via the OPEC news agency, Mr Ali Rodriguez said producers - excluding sanctions-bound Iraq - should expect to increase output to 25.9 million bpd before the end of July if current strong oil prices do not decline.

The announcement by the Venezuelan oil minister followed a two-week delay after the cartel's leading producer Saudi Arabia said it planned raising supply to send prices toward $25.