• Increased foreign interest in Swedish mining

STOCKHOLM (AFP) - The United Arab Emirates on Wednesday criticised OPEC's decision to not hike oil production and said it doubted the effectiveness of major consumers drawing down their strategic reserves.

"We very much regret OPEC's decision (earlier this month) to not increase production," UAE Foreign Minister Sheikh Abdullah bin Zayed bin Sultan Al Nahyan told a joint news conference with Swedish Foreign Minister Carl Bildt.

"Prices are far too high and unsustainable. We have to do everything possible to calm the market," Sheikh Abdullah said.

"I think what's more important is the decision which was taken by several countries to increase supplies to the market," he added, apparently referring to Saudi Arabian moves to boost output.

The world's top crude exporter Saudi Arabia on Monday stressed its concern "that the equilibrium and stability of the world market be maintained, as well as the reliability of supplies, in the interests of producers, consumers, and global economic growth."

On June 8, the 12-nation Organization of the Petroleum Exporting Countries (OPEC) -- which pumps 40 percent of global oil supply -- decided at a Vienna meeting to leave its official output target at 24.84 million barrels per day (bpd), where it has stood since January 2009.

The decision sent crude prices shooting higher on global markets and exposed deep divisions in the cartel amid calls for a hike in quotas.

Saudi Arabian Oil Minister Ali al-Naimi described the meeting as "one of the worst" ever.

The International Energy Agency (IEA), the energy arm of the Organisation for Economic Cooperation and Development, which has repeatedly called on OPEC to pump more crude to prevent high oil prices threatening the global economic recovery, termed its June 8 decision disappointing.

On June 23, the IEA agreed to draw on emergency reserves to make up for lost Libyan supplies, sending prices lower.

However, the UAE foreign minister said he was "not sure how effective" the measure was.

Prices first tumbled after the IEA's moved but climbed again this week ahead of a vote on the Greek debt crisis.

During his visit to Stockholm, the foreign minister and Bildt also discussed bilateral ties and the situation in Libya, Middle-East, in Egypt and in Tunisia, which the UAE official said he was following "with concern."