Oil demand offsets increased supply<\/p>\n
SINGAPORE (Reuter): Former OPEC Secretary General Subroto said
\nyesterday world oil prices could fluctuate by US$1.00-$1.50 if
\nIraq starts exporting 700,000 barrels per day under UN
\nresolutions.<\/p>\n
Speaking on the sidelines of a chemical conference in
\nSingapore, Subroto said oil demand was expected to rise 1.2 to
\n1.3 million bpd in 1996, which would help to absorb Iraq oil.<\/p>\n
\"We expect demand to continue to increase. This will mean that
\nthe 700,000 bpd can be accommodated by OPEC,\" he said. \"So we
\nwill not see a drastic change in prices.<\/p>\n
\"It will fluctuate but not so drastically. The fluctuation
\nwill be in the range of $1.00 to $1.50.\"<\/p>\n
Subroto was speaking to Reuters and two magazine journalists.
\nInternational benchmark Brent crude was trading at $17.75 a
\nbarrel yesterday for April deliveries.<\/p>\n
Iraq was banned from exporting oil after it invaded Kuwait in
\n1990. However, it entered negotiations earlier this month with
\nthe United Nations concerning Resolution 986 which would allow
\noil sales worth $2 billion over six months, the equivalent at
\ncurrent prices of about 700,000 bpd.<\/p>\n
Subroto, secretary general for a six-year term which ended in
\nJune 1994, said Iraqi production on top of the OPEC quota total
\nwould still be less than members were actually producing.<\/p>\n
Production by members of the Organization of Petroleum
\nExporting Countries in January was 25.70 million bpd, more than a
\nmillion barrels above its long-held ceiling of 24.52 million
\nbarrels.<\/p>\n
Another option for OPEC would be a pro rata cut, but he had
\ndoubts about the success of such a move.<\/p>\n
\"This (would be) something difficult for Saudi Arabia, Kuwait
\nand the UAE, (who) have strictly followed their quotas,' Subroto
\nsaid.<\/p>\n
Even a return to pre-Gulf War quotas was unlikely, Subroto
\nsaid. He said Saudi Arabia would have to cut its quota to 5.0
\nmillion bpd from 8.00 million bpd, which was unlikely.<\/p>\n
Subroto said he expected stable oil prices in the longer term.
\nHe predicted Brent would trade around $18.00 per barrel to the
\nend of the decade.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/oil-demand-offsets-increased-supply-1447893297",
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