RI expects OPEC to approve post-war oil output cut<\/p>\n
Agence France-Presse, Jakarta<\/p>\n
Indonesia expects OPEC members at their upcoming meeting to
\napprove an oil output cut of 1.5 million barrels per day for the
\nperiod after the Iraq war, Energy Minister Purnomo Yusgiantoro
\nsaid on Thursday.<\/p>\n
Yusgiantoro told reporters the agenda of the April 24 meeting
\nin Vienna has not been fixed, pending reports from the
\norganization's secretary general.<\/p>\n
"Although the agenda has not been decided, Indonesia supports
\nthe idea of cutting production in order to reduce the current
\noversupply," he told reporters.<\/p>\n
He said Indonesia, the only Asian member of the Organization
\nof Petroleum Exporting Countries, wants to maintain prices in the
\nrange of US$22 to $28 per barrel.<\/p>\n
In Asian trading on Thursday, New York light sweet crude for
\nMay delivery was $28.60 a barrel, down 25 cents from its close in
\nNew York on Wednesday.<\/p>\n
In London, reference Brent North Sea crude for May delivery
\nadvanced 65 cents to $25.25.<\/p>\n
OPEC's special meeting will consider a possible production
\ncut, according to a source at the cartel. The organization is
\nanxious to prevent a drop in world prices once the Iraq conflict
\nends.<\/p>\n
Meanwhile, oil prices traded lower in Asia on Thursday but the
\nmarket's attention shifted from the Iraq war to whether or not
\nOPEC cuts production, dealers said.<\/p>\n
At 12:05 pm (0405 GMT), New York light sweet crude for May
\ndelivery traded at $28.60 a barrel, down 25 cents from its close
\nof $28.85 in New York on Wednesday.<\/p>\n
Of immediate concern is the prospect of a cut in oil
\nproduction by the 11 members of the Organization of Petroleum
\nExporting Countries (OPEC) and part of the worry has already been
\npriced in, dealers said.<\/p>\n
"There may be some concerns that OPEC may cut production to
\nbring prices up but I expect the market to have already factored
\nthis possibility into prices," said a trader with a European
\nfirm.<\/p>\n
OPEC is to hold an extraordinary meeting in Vienna on April 24
\nto consider a possible production cut, according to a source at
\nthe cartel.<\/p>\n
Dealers in London said the market remained concerned at the
\npossible OPEC production cut, as well as how long it might take
\nfor Iraqi oil to flow again.<\/p>\n
"They have been pulling the statue down in Baghdad, but it is
\nmore a sentimental and symbolic event and does not affect the oil
\nmarket," said Prudential Bache broker Tony Machacek in London.<\/p>\n
"It seems that the whole situation in Iraq is beginning to
\nhave less and less of a bearing on the overall situation of oil
\nprices," he said.<\/p>\n
OPEC is anxious to prevent a drop in world oil prices once the
\nIraq conflict ends.<\/p>\n
Adding to the cartel's concerns about over-supply, Venezuelan
\noil is back on line following a two-month labor strike which
\nended in early February.<\/p>\n
Additionally, oil majors in Nigeria have tentatively re-
\nstarted production in the Niger Delta region following weeks of
\nviolent political and ethnic unrest, which halted around 40
\npercent of Nigeria's total oil production.<\/p>",
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