High price bothers OPEC<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
The Organization of Petroleum Exporting Countries (OPEC) on
\nFriday expressed concern over soaring oil prices, which further
\nincreased to set a new record of close to US$50 per barrel mark.<\/p>\n
OPEC President Purnomo Yusgiantoro said the cartel would meet
\nin the middle of next month to seek ways to help ease pressure on
\nprices, and may ask non-OPEC oil producers to also play a role.<\/p>\n
\"I am very concerned with the high oil prices. We will do our
\nbest to prevent the (oil) prices from increasing,\" Purnomo told
\nreporters during a media briefing.<\/p>\n
The group, which supplies a third of global oil, will meet in
\nVienna on Sept. 14 to discuss its quota policy. The meeting may
\ninvolve major non-OPEC oil producers such as Russia.<\/p>\n
\"Commitment (to lower oil prices) can come from OPEC and non-
\nOPEC countries. But it also needs help from big oil companies,\"
\nPurnomo said.<\/p>\n
Reuters reported that U.S. light crude for September rose to a
\nnew record of $49.27 a barrel late on Friday Jakarta time. London
\nBrent hit a new record $45.15 a barrel.<\/p>\n
The news agency said that oil prices were advancing on
\nconcerns over escalating violence in Iraq and strong demand from
\nthe fast growing economies of China and India.<\/p>\n
Clashes between U.S. troops and supporters of Shi'ite Muslim
\ncleric Moqtada al-Sadr in Najas raised fears of sabotage on Iraqi
\noil facilities.<\/p>\n
Iraq's main southern pipeline from the Basra oil fields has
\nbeen shut down since the last sabotage raid on Aug. 9, curbing
\nexports to about a million barrels per day, half the normal
\ncapacity.<\/p>\n
Iraq is a member of OPEC but its production was not accounted
\nin the group's output quota.<\/p>\n
OPEC is pumping at the highest level since 1979. A report from
\nOPEC headquarters estimated it could raise production to 30.5
\nmillion barrels per day (bpd) next month from 29.57 million in
\nJuly.<\/p>\n
Undeterred demand for oil from energy-hungry China and India
\ncontinues to push crude oil prices higher.<\/p>\n
China's oil demand shows no evidence of easing despite government
\nefforts to slow an economic boom. Chinese crude imports for July
\njumped 41 percent with imports for the year to end-July up 40
\npercent year-on-year, according to customs data.<\/p>\n
India's top refiner, state-run Indian Oil Corp. Ltd., said it
\nexpected the country's crude oil imports to rise 11 percent in
\n2004\/05 as demand rises nearly four percent. An oil ministry
\nofficial said India's crude oil import bill was expected to rise
\n50 percent to $27 billion this fiscal year.<\/p>\n
Although oil prices headed near $50, Purnomo said the group
\nhas yet to see signs that the oil hike would slow down global
\neconomic growth.<\/p>\n
\"Demand for goods and services remains strong,\" Purnomo said.<\/p>\n
Indeed, International Monetary Fund director Rodrigo Rato was
\nquoted by Reuters on Friday as saying he still expected world
\neconomic growth this year of 4.6 percent.<\/p>\n
Purnomo also said there was little sign of increasing
\ninflationary pressure in Indonesia's economy despite the oil
\nhike.<\/p>\n
\"There is no sign of high inflation in Indonesia as interest
\nrates remain unchanged,\" he said.<\/p>\n
But Purnomo said the government was bracing for a higher
\ndeficit in the state budget this year as it had to set aside more
\nfunds to finance fuel subsidies. The government has kept fuel
\nprices at home unchanged to avoid social unrest during this year
\nelections.<\/p>\n
According to the government, fuel subsidy spending may rise to
\nRp 56.90 trillion this year, triple the Rp 14 trillion estimate
\ngiven in the state budget.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/high-price-bothers-opec-1447893297",
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