RI won't propose an increase in OPEC quota

RI won't propose an increase in OPEC quota

Indonesia will not propose an increase in OPEC's production quota when the organization meets next week in Vienna, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said Friday.

"We are not going to suggest any quota increase because our production is maximum," the minister was quoted by the state Antara news agency as saying.

He was speaking after meeting President Megawati Soekarnoputri in advance of the March 11-12 meeting of the Organization of Petroleum Exporting Countries.

Last week OPEC Secretary General Alvaro Silva Calderon said the group was ready to offset price increases with more production in the event of a U.S.-led war with Iraq.

He said it could raise its current production quota of 24.5 million barrels a day by over 15 percent in the event of war.

On Thursday, Purnomo said OPEC's price band target was no longer viable because the OPEC basket price was still above the top of the band.

"The $22-$28 per barrel price band isn't workable anymore as the oil price isn't likely to drop below $28 per barrel," Purnomo told reporters.

OPEC's basket of seven crude oils averaged $32.12 a barrel Tuesday, compared with $31.63 per barrel Monday.

However, Purnomo stopped short of saying whether Indonesia will officially ask OPEC to drop the price band mechanism during the organization's meeting in Vienna. -- Agencies