Crude oil prices will decline in the near future as oil producers have indicated they will increase supplies, U.S. Energy Secretary Spencer Abraham said in Moscow, Bloomberg reported.

OPEC producers Saudi Arabia, Kuwait, Nigeria and the United Arab Emirates have indicated they will increase supplies, as has non-OPEC producer Mexico, Abraham said. According to Saudi Oil Minister al-Naimi, the kingdom has increased production to 9.1 million barrels a day for their June orders and will increase output to 10.5 million barrels a day, Abraham said.

``One of the reasons for oil prices to be high is that there is not enough supply,'' Abraham said. ``Saudi Arabia made it clear that additional oil supplies were being made available and much more is coming.''

In the meantime, the Bush administration may ease environmental requirements for many fuel blends and streamline permits for new refineries to increase fuel supplies and fight soaring prices, Commerce Secretary Donald Evans said May 26, The Associated Press reported.

Evans said the administration was taking very seriously the current run-up in prices and the impact it might have on consumers' buying patterns. He said the administration was exploring ways to reduce the requirements that now exist for gasoline blends in different parts of the country to deal with specific air pollution problems.

"We've got to think real hard whether we need 17, 18, 19, 20 – whatever it is — different varieties of fuel in this country," Evans said. "That puts certain areas of the country at a very high risk of being dependent on a single source supplier."

Evans mentioned looking at regulations and how permits are handled for expanding or building domestic refineries. He said a new refinery has not been built in this country in more than 25 years.

Evans is the second Cabinet member to raise the issue of the numerous gasoline blends that are required to meet environmental standards.

Testifying before a House panel last month, Abraham said the administration was seriously considering requests from California and New York to waive requirements that they sell specially blended gasoline. The requirements for the special blends of gasoline make fuel more expensive.