A draft communique from an emergency meeting of world oil powers today in Jeddah fails to set out any specific steps toward curbing runaway prices, a source who had seen a copy of the draft statement said.

Top officials and policymakers from the world's biggest oil producers and consumers, plus chief executives of leading oil companies, are gathering in Jeddah for emergency talks on how to tame oil's unrelenting rally.

'You've got a joint communique that has got to withstand the scrutiny of producers and consumers,' the source told Reuters, on condition of anonymity.

'It is a good common statement of concern. It probably won't meet anybody's expectations or needs.'    

The source said it did not lay out any hard measures to be taken.

Meanwhile, Opec president Chakib Khelil has opposed production increase to counter record oil costs saying 'the price is disconnected from fundamentals' of supply and demand.

'We believe that the market is in equilibrium. The price is disconnected from fundamentals. It is not a problem of supply,' Khelil, the Algerian oil minister, said prior to the meeting.

'We will meet in December to take a decision,' Khelil said.

However, Kuwait, one of the few members of Opec with spare production capacity, said it will 'not hesitate' to pump more if it sees the need.

Oil Minister Mohammad Al-Olaim said: 'Kuwait will not hesitate to increase output if the market needs it.'