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