"We can easily put about 1.8 million barrels per day in the market in 90 days," Naimi said. "There is no squeeze in Saudi capacity - we still have about 1.8 million bpd in spare capacity."

"We have said that if there are any shortages due to disasters or political actions regardless of the price there will be increased production not only from Saudi Arabia but from other producers," the minister said.

"Saudi Arabia has always said and continues to say we are ready to produce what it takes to bring stability to the market."

Speaking after the close of two days of talks between oil producing and consuming nations, Naimi stressed that OPEC had already boosted output four times this year and the market needed time to absorb the extra barrels.

"It is only reasonable to await the impact of at least the last two increments, if not all the incremements," Naimi said.

Naimi reiterated that the kingdom was in support of a moderate and stable oil price. He said as far as producers were concerned there were two main reasons why they did not want high oil prices.

"We're not interested in seeing world economic growth recede because of high (oil) prices and we don't want an excessive price where demand for our product becomes dampened."

Asked if producers and consumers had reached an agreement on a target price for crude, Naimi said: "I repeat again the aim of the forum was not an agreement on specific decisions but the bringing of viewpoints closer together."

"We have heard that a price between $20-$25 is accepted and we in the organisation (OPEC) are saying that a price between $22-$28 is accepted so actually the difference between us is not big."

US Energy Secretary said shortly after the close of the meeting that his country's preferred $20-$25 range had attracted support at the talks.

Naimi said there was "tremendous progress, understanding and respect" between producers and consumers, and said they had arrived at full agreement on many points but some differences remained.

"The disagreement is really specificially on price and also on, I believe, environmental issues and I believe the third one is supply. We have these differences but they are healthy. That's what dialogue is about," he said.

"Remember consuming countries officially will not agree to a specific price," Naimi added. "On the issue of supply, producing countries believe that there is sufficient supply in the market today, some consuming countries feel that there may not be enough because inventories are low."

(Reuters)