Opec is unlikely to cut oil output for the rest of 2006 if global demand holds steady and with prices near $70 a barrel, Qatar's oil minister said yesterday.

Abdullah al-Attiyah also said the Organisation of the Petroleum Exporting Countries (Opec), already pumping at near-maximum capacity, was powerless to help cool oil prices, which have risen more than 20 per cent since mid-February.

"With demand at this level, I think we will keep the output the same all year," Mr Attiyah said.

He said Opec ministers would consult informally this week at the International Energy Forum which starts on Saturday in Doha, but said the cartel was unlikely to take any action.

"On production there is nothing we can do. We are already producing at maximum output," he said. "There is no shortage in supply."

Opec, the source of more than a third of the world's oil, agreed at a March meeting to keep output near 25-year highs in a bid to lower prices and offset concern about major disruptions to supplies from Nigeria and Iran.

The group's next formal meeting is scheduled for June 1.

Oil leapt to $70 a barrel for the first time in seven-and-a-half months today. US May crude oil futures were up 53 cents at $69.85 a barrel by 0742 GMT after hitting $70 earlier. Brent crude was at $71.00 after a new record-high of $71.40.

"I think oil prices are too high but there is nothing we can do," said Mr Attiyah, speaking on the sidelines of an economic forum in Doha.

The price rally has been driven by concern about the stand-off between Iran and the West over Tehran's nuclear ambitions, fears of fuel shortages as demand surges into the northern summer driving season and worries over a loss of about a quarter of Nigeria's crude production to rebel attacks.

Most Opec members are already producing close to their limit and the group has missed its output target of 28 million barrels per day (bpd) every month this year, mainly on Nigeria.

The International Energy Agency has put 2006 demand for Opec oil even higher - at 29.4 million bpd.

Mr Attiyah said he was not concerned about supply disruptions from Iran, which pumps around five per cent of the world's oil. "We are confident that nothing will happen with Iran."

Asked if high prices were harming the global economy, he said: "When they get above $60 I start to worry."