Indonesia will not propose for crude output increase
Monday, September 4 2000 - 04:00 AM WIB
Indonesia will not propose a crude production increase in the next ministerial meeting of the Organization of Petroleum Exporting Countries (OPEC) on Sept. 10, 2000, because crude output in the last quarter had exceeded demands, according to Indonesian representative to OPEC, Kardaya Warnika.
"International crude oil prices in the second and third quarter, 2000, remain high, and it is expected to increase further in the fourth quarter of 2000 because of increasing demands. But we will not propose a production increase because crude oil supplies have exceeded demands," he said.
He noted that data shows that crude oil demands in the second quarter reached 74.5 million barrels per day (bpd), while supplies stood at 76.5 million bpd.
A number of oil consuming countries have called on OPEC to increase production to help stabilize crude oil prices that recently hit $32 per barrel.
The Australia government, for instance, has asked Indonesia to propose an output increase in the upcoming OPEC meeting. Australia wanted to see crude oil prices stay between $24 to $26 per barrel.
A number of world powers have been pressing Saudi Arabia to push up production among OPEC members. Saudi has urged OPEC to increase output by 500,000 bpd. And it will likely bring the proposal to the upcoming OPEC meeting. (*)