ABU DHABI — The United Arab Emirates has been quietly increasing crude oil production.

The UAE has not confirmed the oil increase. IAE said the UAE maintained an oil production capacity of 2.88 million barrels per day.

Meanwhile, Algerian officials expected to fail its target of increasing crude oil production to two million barrels by 2010.

Officials said Algeria would not fulfill plans to increase oil production by 33 percent over the next two years. They cited rising expenses as well as the difficulty in finding reliable contractors.

"Oil is probably going to stabilize," Algerian Energy Minister Chakib Khelil told Reuters on the sidelines of the World Energy Congress in Rome. "It's taking us longer. It's more expensive. It's very difficult to find serious companies. Some of our projects have been delayed, some cancelled."

The minister said Algeria would succeed in increasing natual gas production from 62 billion cubic metres a year in 2006, to 85 billion cubic metres a year by 2010. In January, Algeria was expected to offer 10-15 blocks for energy exploration.

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