OPEC new output ceiling won't much help Indonesia

Analysts said the Organization of Petroleum Exporting Countries' (OPEC) new agreement to raise its oil output would not much help Indonesia, Kompas daily reported.

The analysts said the increase in Indonesian oil output by 93,000 barrels per day to 1.280 million barrels per day as agreed upon during the recent ministerial meeting of OPEC in Vienna would not much help Indonesia given the weakening price of crude oil.

John Russel, director of Petroleum Economics Limited (PEL) Pacific in Singapore, said Indonesia had produced 1.3 million barrels per day before the new oil output agreement was made.

An analyst from Potent and Partners, Jim Weinrauch, said Indonesia would receive lower oil earnings in the second half of the year than in the first half of the year despite the raise in its oil quota. (*)