RI wants higher OPEC benchmark price

RI wants higher OPEC benchmark price

The Jakarta Post, Jakarta

Indonesia will likely ask the Organization of Petroleum
Exporting Countries (OPEC) during its scheduled meeting later
this week to revise upward its crude oil price band to better
reflect economic developments of late.

Minister for Energy and Mineral Resources Purnomo Yusgiantoro
said on Tuesday that the current OPEC price band was no longer in
line with the world's economic situation, with the dollar's
decline affecting most OPEC members' oil export revenues.

"The price band should be adjusted in line with inflation
since 2001 and the dollar's depreciation," Purnomo, who is also
OPEC secretary-general, told reporters without elaborating
further.

Oil ministers from OPEC members are scheduled to meet on Dec.
10 to discuss a number of issues, including oil production quotas
and the price benchmark for next year.

OPEC currently sets the crude oil price range at between US$22
and $28 a barrel. This range has proved to be way below
actual global oil prices, which have averaged close to $36 a
barrel since the start of the year.

OPEC usually tries to either cut or raise production so as to
help keep world oil prices within the benchmark price range.

In midday Asian trade, Crude for January delivery stood at
$43.10.

Purnomo has reportedly said that the new benchmark price
should be raised to between $28 and $32 a barrel.

OPEC is forecast to earn oil-export revenues of $330 billion
this year, up from $245 billion last year, according to PFC
Energy in Washington, Bloomberg said, thanks to robust demand
from China and the U.S.