OPEC has no plans to mull extra output

OPEC has no plans to mull extra output

The Jakarta Post, Jakarta

The Organization of Petroleum Exporting Countries (OPEC) has no
plans at its meeting this month to consider a further increase to
its targeted output of 500,000 barrels per day (bpd) starting
Aug. 1, OPEC president Purnomo Yusgiantoro said on Monday.

"It is not on our agenda yet. We will observe the oil market
first," said Purnomo, who is also Minister of Energy and Mineral
Resources.

He was commenting on previous remarks by Kuwaiti Oil Minister
Sheikh Ahmad al-Fahd al-Sabah that the group would consider a
further increase in output at its July 21 meeting.

OPEC agreed last month to raise its output ceiling by 2.5
million bpd in two stages in an effort to curb soaring world oil
prices.

A rise of 2 million bpd was implemented this month, while the
remaining increase is due to be implemented on Aug. 1.

Purnomo said any decision that OPEC made on July 21 would most
likely come into effect on Sept. 1.

"But we have not decided whether the decision will be to
increase or reduce production," he added.

Meanwhile, oil prices in London rose slightly on Monday but
fell in New York as a resumption to deliveries in Nigeria offset
news of a fire at a major refinery in Norway that has cut output
there by half, traders said.

In London the price of benchmark Brent North Sea crude oil for
delivery in August rose five cents per barrel to US$37.10 in
early afternoon trading.

New York's light sweet crude for delivery in August dipped
eight cents to $39.88 per barrel in pre-opening electronic deals.