(Adds background, White House comments)
By Tom Doggett
WASHINGTON, May 18 (Reuters) - The Bush administration plans to discuss OPEC's crude oil production with Saudi Arabia, which has proposed the cartel boost output by 1.5 million barrels per day, U.S. Energy Secretary Spencer Abraham said on Tuesday.
Abraham said he would meet with Saudi Oil Minister Ali al-Naimi later this week on the sidelines of an Amsterdam conference where producing and consuming nations from around the world will discuss energy issues.
"We'll be discussing exactly what that means," Abraham told reporters, referring to Saudi Arabia's recent proposal for OPEC to increase its official production ceiling by 1.5 million bpd. Traders have expressed skepticism about the adequacy of the proposal, noting that OPEC is already pumping more than 2 million bpd above its official quota.
Separately, a White House spokesman said the administration was staying in "close contact" with OPEC and other world oil producers.
"They've made some commitments and we expect them to follow through on those commitments," spokesman Scott McClellan said.
Saudi Arabia, the biggest member of the Organization of Petroleum Exporting Countries, recently proposed the cartel boost its output by at least 1.5 million bpd to stabilize the market. The proposal is supported by several other OPEC members, who plan to discuss it at the cartel's June 3 meeting.
But Venezuela said it opposed pressure from the United States for OPEC to boost output. Venezuelan President Hugo Chavez told Reuters in an interview that increasing output would be "like giving a sick person the wrong medicine."
U.S. crude oil futures in New York fell to around $40.70 per barrel in late morning trading on Tuesday. Oil prices hit $41.85 a barrel on Monday, the highest U.S. crude price since futures trading started in 1983.