Sudjana estimates upsurge in oil prices will continue

Sudjana estimates upsurge in oil prices will continue

JAKARTA (JP): Oil prices, which have been increasing this
year, are expected to continue rising due to better compliance by
OPEC members with their output quotas, a minister says.

Production by the 12 members of the Organization of the
Petroleum Exporting Countries (OPEC) does not exceed their total
ceiling of 24.52 million barrels per day (bpd), Minister of Mines
and Energy I.B. Sudjana told reporters here yesterday after
swearing in new members for the supervisory board of the oil and
gas technology research and development center (Lemigas).

He said OPEC members are committed to not raising their
production ceiling until the end of the year.

The price of Indonesia's benchmark oil, Minas, increased to
US$15.90 per barrel early this week from about $13 a few months
ago.

Meanwhile, London July futures for the world benchmark Brent
Blend were trading at $16.48 per barrel, as compared to some $13
six months ago.

Sudjana said oil prices are expected to continue increasing
because OPEC, in its ministerial meeting in Vienna on Wednesday,
will likely maintain its production ceiling, while demand for
OPEC oil is estimated to exceed 26 million bpd.

Sudjana added that one of the important issues to be discussed
at the Vienna meeting is the replacement of OPEC Secretary
General Subroto, who has held the post for two periods.

"There are two candidates now being promoted for the post,
including the ministers for oil affairs of Venezuela and Iran,"
he said.

At yesterday's inauguration ceremony, Sudjana reappointed
Suyitno Patmosukismo, who is also director general for oil and
gas, as chairman of Lemigas's supervisory board and Bambang
Triadji as a member. Sudjana also appointed Widartomo
Wirjatmodjo, Luluk Sumiarso and Roefaiki Djajadiningrat as
members of the board. (fhp/imn)