Iran Wants OPEC to Adjust Output for Increased Libya, Iraq Oil, Mehr Says

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"OECD stock levels are at historically low levels, plus we are in a very fragile economic recovery situation," IEA chief economist Fatih Birol told a seminar in Australia on Monday.

"And higher prices than we have now can strangle economic recovery efforts worldwide, therefore the Saudi production boost currently and in the future will be very much welcomed," Birol said.

The IEA has warned that Brent oil prices over $100 a barrel are a threat to the global economy. Brent traded at over $108 a barrel on Monday.

A senior Saudi oil official told Reuters last week the kingdom produced 10.047 million barrels per day (bpd) of crude oil excluding condensate in November, the highest rate for decades.

The figure, greeted with some scepticism by analysts, came as the European Union mulls a ban on oil from OPEC member Iran, a move that could put further upward pressure on oil prices as the Organization of the Petroleum Exporting Countries (OPEC) meets in Vienna on December 14 to discuss production.

Birol said it was too early to make judgements about the possible impact of the global market and prices of EU sanctions on Iran, as the EU had not yet made a decision.

Demand for crude would remain strong driven by energy hungry China, even though non-OPEC production numbers coming out currently were "on the disappointing side", he added

Birol earlier told the seminar on the IEA's World Energy Outlook that consumers globally should brace for oil prices in the coming years of up to $150 a barrel, with demand from China set to leap.

OPEC delegates say the cartel's Vienna-based secretariat will recommend it agree an output target of 30 million bpd for the first half of 2012, above anticipated demand for OPEC crude of 29.9 million bpd in the first quarter and 28.7 million bpd in the second quarter.

Adopting such a high output target, a policy likely to be supported by Saudi Arabia, would allow oil stocks to build and help restrain oil prices, which have been at historic highs.

(Reporting by Rob Taylor; Editing by Lincoln Feast)