OPEC meeting will be tough, Bambang says<\/p>\n
JAKARTA (JP): Minister of Mines and Energy Susilo Bambang
\nYudhoyono said the approaching ministerial meeting of the
\nOrganization of Petroleum Producing Countries (OPEC) could be
\nvery tough as the camps for and against oil output increases were
\nequally strong in the group.<\/p>\n
\"I've heard that OPEC is divided over the issue of a quota
\nincrease. I think there will be a heated debate during the
\nmeeting,\" Bambang said on Friday.<\/p>\n
Bambang reiterated Indonesia's stance to support only a slight
\nincrease in the production quota at the meeting scheduled for
\nMonday in Vienna. Bambang will leave for Vienna on Saturday.<\/p>\n
OPEC is being pressured by the United States to raise output
\nto reduce oil prices.<\/p>\n
Oil prices have risen to above US$30 per barrel over the past
\nseveral months from around $10 a year ago after it and other non-
\nOPEC oil producers decided to cut global output.<\/p>\n
Former OPEC Secretary General Subroto said on Thursday OPEC
\nhad never and would never bow to external forces, including the
\nU.S., in formulating its oil policy.<\/p>\n
\"OPEC formed its policy based on the regular study of the
\nglobal oil supply and demand. If there is an oversupply, it will
\ncut the oil quota and vice versa,\" Subroto said.<\/p>\n
Subroto noted that OPEC included hardliners Iran, Iraq and
\nAlgeria, who will most certainly turn deaf ears to the U.S.<\/p>\n
\"I learned that the three countries object to the proposal to
\nincrease the oil quota. They prefer a wait-and-see stance for two
\nand three months before making a decision whether to raise the
\nquota,\" Subroto said.<\/p>\n
U.S. Energy Secretary Bill Richardson is now on global tour to
\npersuade OPEC and non-OPEC oil producers to raise production.<\/p>\n
Bambang said he hasn't spoken with Richardson on the issue but
\nhad been informed the latter would telephone him.<\/p>\n
The U.S House of Representatives approved legislation on
\nWednesday pressuring OPEC to raise production and reaffirming
\nPresident Clinton's authority to cut U.S. aid and arms sales to
\nOPEC and nations that control world prices.<\/p>\n
The U.S. Energy Information Administration demanded OPEC boost
\noil output by 2 million barrels per day to return world stocks
\nand prices to normal levels.<\/p>\n
This is higher than many OPEC countries, including Indonesia
\nwill find acceptable.<\/p>\n
Bambang earlier said Indonesia would only accept a 1 million
\nbpd increase in output to keep oil prices between $22 and $26 per
\nbarrel.<\/p>\n
The Indonesian government assumes an oil price of $20 per
\nbarrel in the April-December 2000 state budget.<\/p>\n
Leading producers, including Saudi Arabia, are believed to
\nfavor extra OPEC supply of about 1.5 million barrels a day.<\/p>\n
Meanwhile, Iran said Friday it was still against a rise in oil
\nproduction to bring prices down.<\/p>\n
\"A rise in production in the current situation is not
\njustified and a fall in prices risks making the market unstable,\"
\nstate radio quoted senior Iranian oil ministry official Hossein
\nKazem-Pur Ardebili as saying.<\/p>\n
\"Those who, through pressure or embargo, want to control
\nprices showed no concern when the price per barrel was $10,\"
\nArdebili said, as reported by AFP. (jsk\/bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/opec-meeting-will-be-tough-bambang-says-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}