Indonesia wants OPEC to maintain current production level
Indonesia wants OPEC to maintain current production level
Sandy Darmosumarto, The Jakarta Post, Jakarta
Minister of Mineral Resources and Energy Purnomo Yusgiantoro
wants the Organization of Petroleum Exporting Countries (OPEC) to
maintain its current output level of 24.5 million barrels per day
(bpd), as prices remain uncertain.
He said although oil prices would continue to rise until the
beginning of next year amid rising demand from developed
countries, many OPEC members were concerned about Russia's
intention to boost oil production to 8 million bpd.
"Therefore, it would be better to retain this level as the
status quo, not raising nor lowering prices, until we observe
developments in January 2004," Purnomo told reporters. Purnomo
will become the president of OPEC in January.
OPEC is to hold a ministerial meeting on Thursday in Vienna,
and many analysts expect the current production ceiling to be
maintained.
"According to OPEC's estimation, a supply deficit will still
occur in January and February of next year, when developed
nations are expected to be supplementing their oil stocks," said
Purnomo.
"We expect to experience a drop in demand of up to 2.5 million
barrels per day during the spring (of 2004), a correction of a
previous statement when I indicated a reduction of up to 2
million barrels per day," he said.
OPEC has also been under pressure to maintain the cartel's
production ceiling, because any further cuts in production will
imperil the sustained growth of the world economies, particularly
those of oil-importing countries.
Purnomo said OPEC was maintaining a price of US$22-$28 per
barrel.
The 11 OPEC members are Algeria, Indonesia, Iran, Iraq,
Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates
and Venezuela. The group supplies about a third of the world's
crude oil.
Meanwhile, oil prices nudged back up marginally on Tuesday in
the wake of the previous day's falls, with trade quiet ahead of a
meeting of industry cartel OPEC which is expected to usher in no
changes of note.
The price of reference Brent North Sea crude oil for January
delivery was up eight cents to US$28.33 per barrel in morning
trade.
New York's reference light sweet crude January contract rose
10 cents to $30.05 in out-of-hours electronic deals.