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