OPEC doubts producers can ramp up output

OPEC doubts producers can ramp up output

Associated Press, Jakarta

Several of the world's oil producers that are not members of OPEC might not be able to immediately ramp up their output to help bring down current high oil prices, the group's president said on Friday.

The Organization of Petroleum Exporting Countries (OPEC) president, Purnomo Yusgiantoro, did not mention any of the nonmember countries by name but said they would need to increase investments before boosting output.

"We realize that some non-OPEC members can't increase production in the short term, but we believe they can over the longer term," Purnomo, who is also Indonesia's energy minister, told reporters.

OPEC, which accounts for 40 percent of world oil supply, has signaled it would boost production and has asked non-OPEC members to follow suit to make up for lost crude exports from sabotaged pipelines in Iraq.

Russia, a major producer outside OPEC, already has said it can't increase its output anytime soon.

Pipeline attacks earlier this week in Iraq and the subsequent closing of the Basra Oil Terminal threaten to take some 1.5 million barrels of oil a day off global markets.

The attacks could also test OPEC's ability to keep supplies steady if Iraq can't export. Already, nearly all OPEC members are pumping near capacity to meet surging demand from Asia and the United States because of a strong economic recovery.

Saudi Arabia could add more oil, about 1.4 million barrels a day, but that is less than what Iraq was adding to the market.

OPEC met the challenge last year when Iraq exports were halted by the U.S. invasion. But since then, world oil demand has grown at the fastest rate in nearly a quarter century, pushing oil producers to pump as much as they can just to keep up with demand.

Earlier this month, OPEC decided to increase its output ceiling to 25.5 million barrels a day starting July 1, and to 26 million in August, from 23.5 million currently.