Indonesia to ask 500,000 BPD production cut

Indonesia will ask the Organization of Petroleum Producing Countries (OPEC) to cut daily production by 500,000 barrels per day at the group's ministerial meeting next month, said Baihaki Hakim, president director of the state-owned oil and gas company Pertamina was quoted by Bloomberg as saying Monday.

OPEC has an informal agreement to consider another output cut if the so-called OPEC basket, a crude oil index, stays below $22 a barrel for 10 days. On Oct. 18, the price was $18.54 a barrel, the lowest since July 22, 1999, and the 19th day below $22.

"OPEC countries should have reduced production if the price is below the target for more than ten days," Baihaki said. (*)