OPEC may not raise output as demand likely to fall<\/p>\n
Rendi A. Witular
\nThe Jakarta Post\/Jakarta<\/p>\n
In light of an expected oversupply in oil output, the
\nOrganization of Petroleum Exporting Countries (OPEC) is unlikely
\nto agree on raising its quota during the upcoming meeting in Iran
\nto help ease pressure on global oil prices.<\/p>\n
Indonesian Minister of Energy and Mineral Resources Purnomo
\nYusgiantoro said OPEC had expected a 1.8 million barrel per day
\n(bpd) surplus in April, as most oil-consuming countries would
\nreduce their demand during spring time.<\/p>\n
\"I think it is best for OPEC to maintain the quota and let the
\nmarket decide the price, since global oil demand may fall 1.3
\nmillion bpd in April and at the same time there is an oversupply
\nof some 500,000 bpd,\" said Purnomo at the State Palace on Monday.<\/p>\n
Purnomo said OPEC may retain its output quota at 27 million
\nbpd during the group's meeting in Isfahan, Iran, on Wednesday --
\nturning down requests from several countries to raise the quota
\nto help slash soaring oil prices.<\/p>\n
The meeting is held to set the group's market-share and
\nproduction policy.<\/p>\n
Aside from Indonesia, other members of the cartel -- Iran,
\nQatar, Venezuela and Algeria -- have also announced that they
\nwould want to leave the quota unchanged.<\/p>\n
Meanwhile, the United Arab Emirates and Kuwait suggested the
\ngroup keep pumping above the quota to cool oil prices down.<\/p>\n
Oil prices soared by about 25 percent to above $53 per barrel
\non average since the start of the year, on concern about rising
\ndemand and disturbance in supply.<\/p>\n
OPEC, which pumps 40 percent of the world's oil, is producing
\n29.5 million bpd at present, including two million bpd from Iraq
\nand 500,000 in over supply.<\/p>\n
\"With a significant oversupply in April amid a low demand from
\noil-consuming countries -- as most of them are entering the
\nspring season -- logically, oil prices should decline,\" said
\nPurnomo.<\/p>\n
Purnomo hinted that the price of oil, which currently remained
\nhigh, was more a result of speculation rather than real demand
\nfrom the market.<\/p>\n
U.S. light crude soared on Friday by 89 U.S. cents to $54.43,
\nwhile Brent crude in London ended at by 44 U.S. cents higher to
\n$53.10.<\/p>\n
As reported by Reuters, the higher closing was mostly
\nattributable to speculation following an announcement from the
\nInternational Energy Agency (IEA) in its monthly oil market
\nreport that there would be robust growth in oil demand in the
\nUnited States and China.<\/p>\n
The IEA, which advises industrialized nations on energy
\npolicy, has revised up oil demand growth by 290,000 bpd to 1.81
\nmillion bpd this year.<\/p>\n
For annual demand, the agency has estimated it will reach 84.3
\nmillion bpd.<\/p>",
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