Shrinking OPEC share may slow Asian growth<\/p>\n
SINGAPORE (Reuter): OPEC Secretary General Rilwanu Lukman said
\nyesterday that the oil group's declining market share could lead
\nto volatility in oil prices, which in turn could slow the
\neconomic growth of developing Asian nations.<\/p>\n
Without coordination between Organization of Petroleum
\nExporting Countries (OPEC) and non-OPEC members on the problem of
\noversupply, the world may face unstable prices and fluctuating
\nsupply levels, he told the Asia-Pacific Petroleum Conference.<\/p>\n
\"Without OPEC oil, energy growth and therefore the economic
\ngrowth of Asian countries may be adversely affected.\"<\/p>\n
However, Lukman stressed that OPEC would not abandon its
\npolicy of maintaining stable market supplies.<\/p>\n
\"OPEC has been losing market share and its policy of seeking
\nmarket stability is being undermined,\" Lukman said.<\/p>\n
\"But that does not mean we will abandon our policy of pursuing
\nmarket stability and providing stable volumes of oil at
\nreasonable prices,\" he added.<\/p>\n
\"We have called upon non-OPEC producers to help share the
\nburden of maintaining market discipline,\" he said.<\/p>\n
Excluding Japan and other Organization for Economic
\nCooperation and Development (OECD) Pacific countries, Asian oil
\ndemand is expected to grow by about five percent annually from
\n1995 to 2010.<\/p>\n
Rising oil demand will see net imports to Asia surpass 12
\nmillion bpd by 2010 -- more than a third higher than in 1993.<\/p>\n
The incremental oil demand in the Asia-Pacific is likely to
\nexceed the growth rate in non-OPEC production.<\/p>\n
\"OPEC has around three quarters of the world's oil reserves,
\nand is therefore the most likely source of the extra oil which
\nwill be required in the Asia-Pacific and elsewhere in the years
\nahead,\" Lukman said.<\/p>\n
But if non-OPEC producers do not exercise some restraint, OPEC
\nmembers will be left with fewer financial resources to develop
\ntheir oil, he said.<\/p>\n
He added that OPEC countries have a stake in helping Asia
\ndevelop its oil markets.<\/p>\n
\"OPEC member countries, particularly those in the Middle East,
\nare well placed to meet the growth of demand in this region.\"<\/p>\n
\"That means they also have a strong interest in the
\ndevelopment of the Asian downstream sector, and have the
\nexpertise to offer to Asian countries which are developing their
\nupstream activities,\" he said.<\/p>\n
Lukman said that there was substantial room for cooperation
\nbetween OPEC and Asia-Pacific as both could benefit from the
\ndevelopment of Asia's growing national petroleum sectors and from
\ninvestments in distribution and infrastructure projects.<\/p>\n
\"OPEC will not spare any effort to fulfill its role of
\nsupplying Asia's growing requirements for oil at a reasonable
\nprice and I am sure Asia will support us in the challenge,\" he
\nsaid.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/shrinking-opec-share-may-slow-asian-growth-1447893297",
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