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.