March 29 (Bloomberg) -- OPEC, source of a third of the world's oil, may delay oil-production cuts planned for April 1 after prices reached a 13-year high in New York, officials from the group and analysts said before a meeting in Vienna.

The Organization of Petroleum Exporting Countries meets Wednesday to consider whether to proceed with a Feb. 10 decision to lower its output quota by 4 percent. Oil prices in the U.S. have risen 7.6 percent since then, giving little incentive to curtail supply. Purnomo Yusgiantoro, OPEC's president, today said the group is concerned about high oil prices.

``OPEC clearly hasn't cut output in March and there's very little sign they will cut by very much in April,'' said Julian Lee, an analyst at the Centre for Global Energy Studies, a London- based consulting company founded by former Saudi oil minister Sheikh Zaki Yamani. ``We don't expect OPEC to reduce supply by very much, whatever they say in Vienna.''

Stronger-than-expected demand, led by China's expanding economy, has underpinned crude this year, sending U.S. gasoline prices to a record and boosting earnings at oil companies such as London-based BP Plc and Exxon Mobil Corp. Oil consumers have criticized rising prices, which lead to higher costs for businesses. Houston-based Continental Airlines Inc. last week raised fares for the second time in a month to help cover rising fuel costs, which it said will wipe out profit this year.

`Not Yet Clear'

``What we are concerned about now is the high price,'' Purnomo said in an interview in Vienna. ``We see it going slightly down'' in the second quarter, he added.

Brent crude oil was down 40 cents at $31.59 a barrel at 1:58 p.m. on London's International Petroleum Exchange. Crude oil in New York was down 33 cents at $35.40 a barrel in electronic trading.

U.S. Treasury Secretary John Snow on Thursday said the current outlook for oil prices is ``regrettable,'' and banks including Deutsche Bank AG and Credit Suisse First Boston have recently raised their estimates for oil prices.

Ali al-Naimi, the minister for Saudi Arabia, OPEC's top producer, this weekend repeated support for OPEC's official price target of $22 to $28 a barrel and said the decision the group will take on Wednesday is ``not yet clear.''

Price Range

``We see that it is necessary to maintain moderate prices through security of supplies,'' al-Naimi said, the Asharq Al-Awsat newspaper reported. ``We in OPEC see that $25 a barrel is a fair price for producers and consumers and that, in the long term, a price between $22 and $28 a barrel must be realized.''

Ministers for the United Arab Emirates and Qatar have in the past 10 days said OPEC may delay the April cut in quotas, while Venezuela and Algeria have said the decision should stand. Ministers from Saudi Arabia, Nigeria, Libya and Algeria are scheduled to arrive in Vienna today.

An official who attended a meeting of OPEC economists in Vienna last week said members should confirm the April 1 reduction, while they would probably ignore the decision because of current high prices. He declined to be identified.

OPEC's price benchmark has surpassed $28 since December. Nigeria, Africa's most populous nation and OPEC's joint fourth- largest producer, earlier this month joined Venezuela in suggesting that OPEC raise the price target.

`Surprise'

The group has surprised traders at meetings in September and February by deciding to cut quotas. Oil prices fell last week after a rise in U.S. crude inventories that left stockpiles 4.5 percent higher than a year ago.

``If the market continues to slip, it will strengthen the hand of those still in favor of implementing the cuts,'' said Nauman Barakat, a senior vice president at Refco Energy Markets in New York. ``They might surprise us again.''

Oil sales can account for 80 percent of government income in OPEC countries. Ministers from Saudi Arabia and other nations have said a 14 percent increase in the euro against the U.S. dollar in the past year has eroded the purchasing power of dollar-based oil sales.

Average U.S. gasoline prices reached a record $1.74 a gallon last week, and the government expects them to reach a record in April. Pressure is building for President George W. Bush, who is running for re-election this year, to quit drawing supplies into the nation's Strategic Petroleum Reserve, a move that drains crude from the open market.

Lower Demand?

Ministers from Algeria and other nations for months have expressed concern that supply will exceed demand next quarter should warmer weather lower demand.

``From an OPEC point of view, however it's presented, the bottom line is they really do have to take some oil off the market,'' said Paul Horsnell, head of energy research at Barclays Capital in London.

Economists at OPEC estimate members need to pump 24.76 million barrels a day next quarter to meet demand. The International Energy Agency, an adviser to 26 oil-consuming nations, has a lower forecast, projecting demand for OPEC oil of 23.9 million barrels a day.

OPEC's 10 members, excluding Iraq, are supposed to pump 24.5 million barrels a day following September's accord to limit supply starting in November. The decision was never enforced, according to outside estimates. The group has no mechanism to ensure members meet their targets.

The group excluding Iraq is likely to produce 25.7 million barrels a day this month, little changed from February, according to Geneva-based oil consultant PetroLogistics Ltd.

``It's too late to implement April 1 cuts, but are they going to officially change that?'' said Adam Sieminski, Deutsche Bank's global oil strategist in London. ``OPEC will claim that they are going to go ahead, but I don't think they'll actually do anything until there's some evidence they have to.''

To contact the reporter on this story: Alex Lawler in Vienna through the London newsroom alawler@bloomberg.net.

Last Updated: March 29, 2004 08:03 EST