OPEC raises oil production

Ministers of the world's biggest oil producing states today agreed to increase output in a deal to help level off soaring pump prices.

Sources at the Opec summit in Beirut said the cartel would immediately raise production by two million barrels a day, following up with a rise of half a million barrels per day in August.

Saudi Arabia has already said it is " determined" to drive down prices by pumping nearly 11 per cent more oil, and the United Arab Emirates announced an increase of 400,000 barrels a day.

The energy producers were under intense international pressure to act after the cost of crude oil rose to record levels following scares about security in the Middle East. It is hoped the supply increase will cut prices on Britain's forecourts, which topped £1 a litre for the first time this week.

US crude futures climbed back 40 cents to $40.39 today after falling back from a record high of $42.45 early yesterday. In London, Brent rose 47 cents to $37.33.

News of the Opec agreement came amid reports Gordon Brown was considering scrapping the planned 2p-a-litre rise in fuel duty this September. The spectacular U-turn was being considered by the Treasury as a last resort if world oil markets remain volatile. But with lorry drivers and farmers threatening a new wave of demonstrations, ministers have also drafted emergency plans to get tough with any attempt to blockade oil depots.

Troops and police will be posted to protect refineries, speed limits imposed and train ticket prices cut to cope with any shortages.

The plans came as police announced that hundreds of fuel protesters are expected to converge on Cardiff this weekend. A South Wales Police spokesman said about 300 trucks were believed to be ready to attend the demonstration on Saturday.

Tory leader Michael Howard has given his backing to demonstrators, raising tensions

further.

But today the Tories' stance on the protests was plunged into confusion when Mr Howard appeared to have retracted his support for the protesters.

Mr Howard said yesterday he would "entirely understand" why people would demonstrate.

But today he told GMTV: "They are entitled within the law to do it. I don't want them to do it."

Labour Party Chairman Ian McCartney said Mr Howard's backtrack over the fuel protests was another example of his "poor leadership".

He added: "For Michael Howard to give support to fuel protests is not only grossly irresponsible, it shows a serious lack of judgement from a man who wants to be Prime Minister."