OPEC agrees to raise output ceiling by 10%<\/p>\n
JAKARTA (JP): The Organization of Petroleum Exporting
\nCountries (OPEC) agreed yesterday to raise its output ceiling by
\nabout 10 percent to 27.5 million barrels per day (bpd) for the
\nfirst half of next year, from 25.03 million pbd.<\/p>\n
OPEC secretary-general Rilwanu Lukman said delegates at the
\n103rd OPEC Conference at the Dharmawangsa hotel set the new
\noutput ceiling to benefit from the growth in world oil demand,
\nwhich the organization estimated to be between 1.5 million bpd
\nand two million bpd next year.<\/p>\n
World demand this year is estimated at 73.5 million bpd.<\/p>\n
Under the new ceiling, Algeria had its quota increased by 21.3
\npercent to 908,500 bpd, while the other 10 countries uniformly
\nreceived a quota increase of 9.5 percent.<\/p>\n
The ceiling increase was first proposed by Saudi Arabia, but
\nseveral countries, including Libya, Algeria, and Iran, opposed
\nthe idea until Friday.<\/p>\n
Lukman said that after more than six hours of meetings
\nyesterday all the delegates agreed to the ceiling increase as
\nwell as their quota allocations.<\/p>\n
\"(There were) absolutely no reservations (about the ceiling
\nand quotas) on the part of any one of the delegations,\" said
\nLukman, who was re-elected as the secretary-general during the
\nmeeting.<\/p>\n
OPEC groups Indonesia, Saudi Arabia, Algeria, Iraq, Kuwait,
\nLibya, Qatar, the United Arab Emirates, Venezuela, Iran, and
\nNigeria. It accounts for 40 percent of the world's output.<\/p>\n
OPEC last increased its output ceiling four years ago.<\/p>\n
When asked about whether the ceiling increase might
\ndestabilize oil prices, Lukman said OPEC purposely raised the
\nceiling in order to keep prices stable amid the world' growing
\ndemand for oil.<\/p>\n
New OPEC president I.B. Sudjana, who is also Indonesia's
\nMinister of Mines and Energy, said the conference estimated the
\nworld's demand for OPEC oil would be more than 28 million bpd but
\nOPEC had set a lower ceiling to keep prices stable.<\/p>\n
Former OPEC secretary-general Subroto also believed oil prices
\nwould remain strong despite the ceiling increase since the new
\nceiling was similar to OPEC's actual output this year.<\/p>\n
\"Prices might go down to begin with, but they will soon
\nrecover,\" Subroto said.<\/p>\n
The Ministerial Monitoring Subcommittee -- which is charged
\nwith monitoring members' compliance with their own ceiling --
\nreported during the conference that most members had violated
\ntheir quotas, taking total OPEC output to 27.2 million bpd this
\nyear, or about 2.2 million bpd higher than its ceiling.<\/p>\n
Lukman said all member countries stressed their commitment to
\nthe new ceiling and individual allocations, but he stressed OPEC
\nwould not impose any sanctions on quota violators.<\/p>\n
Sudjana said he was satisfied with the results of the
\nconference, adding that the new quota allocated for Indonesia
\nwould enable Indonesia get more revenue from oil exports.<\/p>\n
Indonesia's quota was increased to 1.456 million bpd, from
\n1.33 million bpd.<\/p>\n
The state-owned oil and gas company, Pertamina, has stated
\nthat Indonesia has enough spare capacity to increase the
\ncountry's oil output to 1.5 million bpd.<\/p>\n
Other delegates also expressed satisfaction with the results
\nof the conference.<\/p>\n
\"We are happy. I think prices will hold up for the time
\nbeing,\" Kuwaiti Oil Minister Issa al-Mazidi said. The country's
\nnew quota is 2.190 million bpd.<\/p>\n
Iranian delegates also reacted positively. \"The ceiling is
\nwell below the call on OPEC oil if members adhere (to quotas),\"
\none said.<\/p>\n
Sudjana said OPEC delegates would have a free day today and
\nwould meet President Soeharto on the closing day, tomorrow, at
\nthe hotel. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/opec-agrees-to-raise-output-ceiling-by-10-1447893297",
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