OPEC to work for oil price of $16-$19
OPEC to work for oil price of $16-$19
JAKARTA (JP): Ministers of the Organization of Petroleum
Exporting Countries (OPEC) expect to determine a production
ceiling aimed at achieving sales prices of between US$16 to $19 a
barrel in their 97th meeting in Bali next week.
"The quota for the first quarter of next year will be
determined on the basis of the supply and demand conditions,
which will be evaluated in next week's meeting," Minister of
Mines and Energy I.B. Sudjana told reporters here yesterday.
He said demand for OPEC oil will likely surge from 25.61
million barrels per day (bpd) in the fourth quarter of this year
to 26.13 million bpd in the first quarter of next year before
falling back to 23.9 million bpd in the second quarter.
The demand is estimated to rise again to 24.52 million bpd in
the third quarter and to 26.71 million bpd in the fourth quarter,
bringing the average demand for OPEC oil to 25.52 million bpd in
1995, he said.
The average demand for OPEC oil is estimated at 24.87 million
bpd in 1994, he added.
When asked whether ministers of OPEC's 12 member countries
would seek an increase in the production ceiling from the present
level of 24.52 million bpd, Sudjana said: "Please, wait for next
week's meeting.
"But the current level of production is ideal," he added.
OPEC groups Algeria, Gabon, Indonesia, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and
Venezuela.
Iran and Libya reportedly called on fellow OPEC members last
week to keep the production ceiling at its current level, saying
that this would help stabilize the oil market.
Oil prices have ranged between $16.85 and $17.94 in November.
Sudjana said yesterday that none of the OPEC members has any
idea of lowering the production ceiling because such an idea
would not benefit the organization.
Secretary-general
He said the three-day Bali meeting will also appoint a new
secretary-general to replace Subroto of Indonesia, who ended his
second three-year term of office in the middle of this year.
Nigeria is competing against candidates from Venezuela and
Iran for the position.
The election of a secretary-general, which must be unanimous
under OPEC rules, has been deadlocked since Iran blocked the
approval of former Venezuelan oil minister Alirio Parra at the
June meeting in favor of its own candidate, Hossein Kazempour-
Ardebili.
Sudjana said next week's meeting, the fourth to be held on the
tourist island of Bali, has apparently attracted a large number
of officials of the member countries.
"We thus far have received confirmation for the participation
of 134 delegates from the 12 member countries," he said, adding
that Indonesia will provide free accommodation only for
ministers, ambassadors and two other delegates from each of the
member countries.
Director General for Press and Graphics Subrata said yesterday
that about 300 foreign and domestic journalists are expected to
cover the meeting. (riz)