Indonesia urges OPEC to maintain quota

Indonesia urges OPEC to maintain quota

JAKARTA (JP): Indonesia called on the Organization of
Petroleum Exporting Countries (OPEC) on Friday to maintain the
group's existing production quota to prop up current high prices
on the world market. OPEC plans to meet in Vienna next week.

"We are satisfied with current prices," Minister of Mines and
Energy Kuntoro Mangkusubroto told reporters at his office.

Indonesia will propose in the Sept. 22 meeting that OPEC
maintains the quota until next March.

World oil prices currently hover between US$22 and $24 a
barrel, compared to $9.90 in February. At a meeting in March,
OPEC won agreement from members and nonmembers to slash
production by two million barrels per day beginning April 1.

Indonesia cut its oil production output by 34,000 barrels per
day, from 1.28 million to about 1.25 million.

Kuntoro noted that compliance with the March agreement reached
90 percent, the highest rate ever.

In the past, OPEC was notorious for breaching its own
agreements.

Indonesia had complied with the quota, Kuntoro said.

Indonesia was the only Asian country who agreed to cut oil
production. China, Malaysia and Vietnam, which have a combined
daily production of more than four million barrels per day,
refused to join the agreement arguing that their share of the
cuts would be insignificant to world production.

"I feel that most OPEC members are satisfied with the results
coming from the production cuts," Kuntoro said.

The Vienna talks are expected to prepare a summit meeting in
Venezuela next year, a new format for the group to face the new
millennium with and the election of a new secretary-general to
replace Rilwanu Lukman of Nigeria.

Indonesia has no plans to contest the election.

"Indonesia does not support any candidate," Kuntoro said.

Meanwhile, oil prices in Asia eased slightly on Friday, but
otherwise the market remained buoyant in expectation that OPEC
would confirm next week its intention to keep output cuts firmly
in place.

New York Mercantile Exchange (NYMEX) November crude futures
slipped 16 cents to $23.93 per barrel in Asia by 0810 GMT.

Traders said the losses were partly a balancing act, as the
NYMEX market responded to London losses on Thursday.

NYMEX in New York cut short its trading hours because of
Hurricane Floyd after gaining 38 cents on the day.

London's eventual gains on the Brent November contract were
more modest -- at just five cents on the day -- so NYMEX prices
fell in Asia to catch up, traders said. (02)