OPEC's most influential member says the oil cartel should raise production quotas at Wednesday's meeting in Iran.

Saudi Arabia's Oil Minister Ali al-Naimi says the Organization of Petroleum Exporting Countries should boost output by 500,000 barrels a day from the current self-imposed limit of 27 million barrels.

Supply concerns were one factor behind last week's surge that pushed oil prices to within pennies of the all-time record in New York trading.

The price of crude oil for April delivery declined after the Saudi announcement. But oil prices later rose 52 cents to close at $54.95 a barrel in New York on Monday.

OPEC produces about 40 percent of the world's oil and energy ministers from its 11 members are gathering to discuss oil supplies and prices.