Oil has risen to near two-and-a-half-year highs near $119 a barrel in recent days, spurred by political instability in the Middle East and North Africa.

Fighting between rebels and forces loyal to Libyan leader Muammar Qaddafi has shut down almost all of Libya’s 1.6 million barrels per day (bpd) oil industry, prompting Saudi Arabia to unilaterally boost crude production to try and compensate for the loss and rein in oil prices.

Kuwait, however, remains optimistic the disruptions in Libya will prove short-lived.

“Unrest in the region may last only a few months, helping to alleviate oil prices,” Zanki said in a speech at an industry conference.

Zanki was later quoted by state news agency KUNA in a mobile phone text message sent to subscribers as saying $90 to $100 a barrel was a fair price for crude.

“KPC is committed to secure shipments to international markets through continuous investment in expanding its capacity and the fair price for a barrel is between $90 and $100,” KUNA said.

Saudi Arabia’s unilateral output increase has not been followed by other OPEC members.

Asked if Kuwait was boosting oil output, Zanki said the government had not instructed Kuwait Petroleum Corp to do so.

“So far we have not been told to do that (for April),” he said after his speech.

Kuwait says it has between 600,000 and 700,000 bpd in spare production capacity, although consuming nations put the figure at about half that level.

Kuwait produced 2.42 million bpd in March, up from 2.31 million bpd in February and over its implied 2.22 million bpd OPEC quota, according to a Reuters survey.

Saudi oil output has risen to near 9 million bpd and the kingdom moved last month to sharply increase the number of drilling rigs it has operating to maintain its claimed 12.5 million bpd oil production capacity.

Some of the rigs will likely be deployed in the Neutral Zone between Kuwait and Saudi Arabia that is shared by the two countries, Bader Al-Khashti, chairman of Kuwait Gulf Oil Company, the KPC subsidiary that oversees Kuwait’s interests in the Neutral Zone said.

Khashti said Kuwait’s share of oil production in the Neutral Zone was currently about 285,000 bpd. Total output capacity from the area is 610,000 bpd.