OPEC allows members to up output

OPEC allows members to up output

JAKARTA: The president of the Organization of Petroleum Exporting Countries (OPEC) said on Thursday the cartel will allow member states to raise output to stabilize high world prices.

"We have a tolerance, they can increase their production in the framework of stabilizing prices," Purnomo Yusgiantoro, who is also Indonesia's Minister of Energy and Mineral Resources told reporters.

Purnomo said OPEC will go ahead with its previously agreed one million barrels per day output reduction next month but a temporary production increase was allowed under OPEC policies if oil prices exceed US$28 per barrel.

"Leakage is allowed in the framework of assuring security of supply to the world market," Purnomo said. New York's benchmark light sweet crude April contract stood at $36.10 a barrel on Wednesday.

Purnomo said current production levels and world oil prices will be reviewed soon and a further decision on production be taken.

"If we later see that in this spring season there is a oversupply, we may take steps," he said without elaborating. -- AFP