OPEC output rise would have lowered oil price-IEA

PARIS (Reuters) - The International Energy Agency (IEA), which advises industrialized countries on energy policy, said on Wednesday record crude oil prices would have eased had OPEC decided to raise production at its meeting.

OPEC ministers agreed earlier at a meeting in Vienna to hold output steady and said oil prices, which hit new highs on Wednesday, were been driven by factors beyond their control.

"I think it's basic economics, if you increase the amount of supply that is available, prices fall," said Lawrence Eagles, head of the IEA's Oil Industry and Markets division. "We are seeing the market signaling a desire for more flexibility."

(Reporting by Muriel Boselli; editing by James Jukwey)