OPEC urges higher oil output

OPEC urges higher oil output

The Jakarta Post, Jakarta

The Organization of Petroleum Exporting Countries (OPEC) has
urged non-OPEC oil producing countries to pump more oil in a bid
to ease soaring prices.

OPEC president Purnomo Yusgiantoro said high oil prices would
hurt the economy of developing nations.

"We have asked non-OPEC countries to increase their output
because high oil prices will affect developing countries,"
Purnomo, who is also the Indonesian minister of energy and
mineral resources, said on Monday.

Purnomo said nonfundamental factors had made oil prices rise
again despite the cartel's recent decision to increase output by
2.5 million barrels per day (bpd) starting August 1.

He cited political tension in the Middle East as an example of
one of the nonfundamental factors affecting oil prices.

"This is more related to geopolitical matters than supply-
demand," he said.

The 11 members of OPEC are responsible for a third of all
world oil production. The bulk of the world's oil comes from non-
OPEC countries, notably Russia, Norway, Mexico and Oman.

Purnomo said OPEC would convene on July 21 in Vienna to assess
the decision to increase output.

Asked if OPEC would decide to again increase output at the
meeting, Purnomo said any decisions on production levels would
likely take place in September.

Purnomo said OPEC's reference price of seven crude oil
products could rise to about US$37 per barrel in the summer,
particularly if nonfundamental factors continued to affect the
market.

Otherwise, OPEC's basket price could return toward its price
range target of $22 to $28 per barrel, he said.