OPEC remains concerned at falling oil price<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
The Organization of Petroleum Exporting Countries (OPEC)
\nremains concerned at the likelihood of a declining oil price in
\nthe second quarter of this year when demand for heating fuel
\nfalls off.<\/p>\n
OPEC President Purnomo Yusgiantoro said demand for the fuel
\nwas expected to drop by 2.2 million barrels per day (bpd) to 2.4
\nmillion bpd.<\/p>\n
"If (the oil price drop) materializes, we shall take measures
\nto keep the price at US$22 to $28 at the end of March," Purnomo,
\nwho is also Indonesia's Minister of Energy and Mineral Resources,
\ntold a media conference on Tuesday.<\/p>\n
OPEC, which produces a third of the world's oil, is scheduled
\nto meet on March 31 in Vienna to discuss production policy.<\/p>\n
OPEC ministers decided on Feb. 10 to reduce official output
\nlimits by one million bpd from 24.5 million bpd to 23.5 million
\nbpd, starting from April 1, excluding Iraq. It aims to avoid a
\nprice collapse in the second quarter when demand for oil falters
\nas winter comes to an end in the northern hemisphere.<\/p>\n
Oil prices continued to climb on concern at tight gasoline
\nsupply in the U.S. ahead of summer demand.<\/p>\n
On Monday, U.S. Light crude for April traded up 19 U.S. cents
\nat $34.54, Reuters reported. Brent Crude for April on the
\nInternational Petroleum Exchange in London climbed 14 U.S. cents
\nto $30.95.<\/p>\n
Purnomo said the rising oil price was partly due to a longer
\nwinter in the northern hemisphere, which had prompted stronger
\ndemand.<\/p>\n
Security disturbances in Iraq had also contributed to the high
\nprice.<\/p>\n
"Security problems in Iraq have disturbed the country's oil
\nproduction. It is not clear when Iraq will achieve its 3 million
\nbpd target," Purnomo said.<\/p>\n
Iraq currently produces 2.1 million bpd.<\/p>\n
Purnomo said OPEC members could still produce oil above quota
\nas long as oil prices remained above $28 per barrel for two more
\nconsecutive weeks.<\/p>\n
"OPEC's basket price is still above $28 per barrel, and it
\nmeans (if it stays above $28 per barrel), for two consecutive
\nweeks OPEC (members) would be allowed to produce above the quota
\nto bring the price below $28 per barrel," Purnomo said.<\/p>\n
OPEC's reference crude oil price, or basket of crude oil, was
\nat $30.17 per barrel on Friday. The price has been above $28 per
\nbarrel since December 2003. OPECs basket of crude is an index of
\nseven oil grades.<\/p>\n
Purnomo said OPEC would seek measures to keep its basket price
\nwithin the price band $22 to $28 per barrel.<\/p>\n
The price band mechanism aims at maintaining the oil price
\nrange by raising production by 500,000 barrels per day if the
\nbasket price stays above $28 barrel per day for 20 consecutive
\ntrading days. OPEC could lower output by a similar amount if the
\nprice stayed below $22 per barrel for 10 consecutive trading
\ndays.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/opec-remains-concerned-at-falling-oil-price-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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