Italy fears Saudi output hike won't be enough

LEVICO TERME, Italy (Reuters) - Italy's economy minister said on Sunday he feared the impact of an expected increase in Saudi oil output on scorching oil prices could be offset by production outages in Nigeria.

"There have been a terrible set of geopolitical events together, like production stoppages in Nigeria, that can render useless the efforts of higher production in Saudi Arabia," Giulio Tremonti said at a trade union conference.

Tremonti has previously called speculation on oil and commodities the "plague" of the 21st century, saying it has produced devastating effects on both rich and poor countries.

Saudi Arabia, the world's top oil exporter, has decided to increase oil supply to meet demand from customers, a Saudi oil source said on Saturday as delegates from oil consuming and producing nations met in Jeddah to tackle record prices.

Italy, an energy importer, is one of the many countries hit hard by the surge in prices and is expected to face an energy bill of 65 billion euros this year, up 38 percent from a year earlier.

(Reporting by Alberto Sisto; Editing by Paul Bolding)