OPEC vows more dialog meetings with partners<\/p>\n
JAKARTA (JP): The Organization of Petroleum Exporting
\nCountries (OPEC) will intensify dialogs with consumers and
\nindependent producers to seek ways to stabilize the oil
\nmarket.<\/p>\n
I.B. Sudjana, the organization's president and also Indonesian
\nminister of mines and energy, told reporters after installing
\nsecond echelon officials at his ministry here yesterday that OPEC
\nwill establish a committee for the intensification of dialogs.<\/p>\n
\"I will put high priority on dialogs aimed at the
\nstabilization of the oil market,\" Sudjana, who was elected as
\nOPEC's president in its ministerial meeting in Bali earlier this
\nweek, said.<\/p>\n
OPEC will likely initiate the establishment of a permanent
\nforum of dialogs with independent producers and consumers, he
\nsaid.<\/p>\n
The 12-member organization has held discussions with consumers
\nand independent producers \"but the discussions were limited to
\nseeking a solution for certain specific problems,\" he said.<\/p>\n
Sudjana acknowledged that oil demand on the world market is
\nexpected to increase next year but said that \"if OPEC and
\nindependent producers do not curb output, oil prices will
\ndecline\".<\/p>\n
OPEC predicts that the world demand for oil will likely
\nincrease to an average of 66.75 million barrels per day (bpd)
\nnext year from 65.91 million bpd this year.<\/p>\n
Even though next year's demand for OPEC oil is estimated to
\naverage at 15.52 million bpd, as compared to 24.85 million bpd
\nthis year, the organization decided on Tuesday to extend its
\noutput ceiling of 24.52 million bpd until the end of 1995.<\/p>\n
Consumers<\/p>\n
Sudjana said OPEC plans to set up a committee to deal with
\ncooperation and dialogs with oil consumers during an OPEC-
\nconsumer meeting in Caracas, Venezuela, next year.<\/p>\n
\"I hope the committee will be able to provide a new sphere of
\ncooperation because dialogs will bring more understanding between
\ntwo sides,\" he said.<\/p>\n
OPEC and its consumers held dialogs in 1991 in Paris, in 1992
\nin Solstrand of Norway and in 1993 in Cartagena, Spain.<\/p>\n
Sudjana said dialogs with consumers are focused on the
\nimposition of taxes on oil products, which has raised serious
\nconcern among OPEC members.<\/p>\n
Taxes have become an increasingly harmful burden to OPEC
\nmembers, which are generally developing countries, he said.<\/p>\n
The minister said OPEC's compliance with its production
\nceiling has raised oil prices on the world market, so that the
\naverage of Indonesia's oil prices during the first eight months
\n(April to November) of this fiscal year has reached $16.32 a
\nbarrel, slightly above $16 used by the government to calculate
\nits budget.<\/p>\n
Indonesia's oil price averaged at $16.18 a barrel in October
\nand $16.27 in November, he added.<\/p>\n
The government, under its budget plan, expects a 15 percent
\ndecline in its revenue from the oil and gas sector to Rp 12.85
\ntrillion ($5.8 billion) this fiscal year from Rp 15.12 trillion
\nin 1993-94. (fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/opec-vows-more-dialog-meetings-with-partners-1447893297",
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