OPEC expected to roll-over its daily production ceiling
OPEC expected to roll-over its daily production ceiling
By Frits H. Pangemanan
NUSA DUA, Bali (JP): The 97th conference of the Organization of Petroleum Exporting Countries (OPEC) will be opened today by President Soeharto following a preliminary commitment to roll- over its production ceiling of 24.5 million barrels per day.
About 150 delegates from the 12-member organization are attending the three-day conference being held at the Pertamina Cottage in Kuta.
"A very important thing happened during the informal meeting of the organization, all OPEC members agreed that the organization's production ceiling should be rolled-over," former OPEC secretary-general Subroto told The Jakarta Post and Republika during a dinner last night.
"But, it has not been decided whether the roll-over should be implemented for six, nine or 12 months," he said. He added that most delegates preferred more than six months.
OPEC is made up of Algeria, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.
Subroto, who led the organization for six years until last June, said, "I personally prefer to implement the production ceiling's roll-over for 12 months as of next January, because it will give a strong signal to the world that the organization is in position to control the market."
He said that the up-trend in oil prices during the last quarter of this year was due to good control and the strong compliance to the ceiling by OPEC members.
"I am very optimistic that if the roll-over is implemented for at least six months in 1995 the price of oil will be pushed up," he stressed.
The OPEC basket price is now US$16.50 per barrel. London Brent closed at $16.45 last Friday compared to $16.50 on Thursday, while NYMEX light crude closed at $17.71 on Friday against $17.65 on Thursday.
According to Subroto, today's agenda is expected to approve the roll-over of the production ceiling, while the election of a new secretary general will be held tomorrow.
Subroto also said that they have endorsed three names for secretary general post.
"They are Hussein Kazembur-Ardebili from Iran, Alirio Parra, a former Venezuelan oil minister, and Rilwanu Lukman, the former oil minister of Nigeria," he said.
"But there are still serious problems to overcome before they can reach a consensus on the candidates. Hussein Kazembur- Ardebili, for example, is supported by his own country, while Alirio Parra isn't supported by Iraq," he said.
He added that the candidates, including Nigerian Rilwanu Lukman, will be discussed at tomorrow's meeting.
Candidates -- Page 10