OPEC?s output needs 500,000 BPD hike if price range exceeds $28: Purnomo

Indonesia will propose that OPEC (Organization of Petroleum Exporting Countries) increase the cartel?s total output by 500,000 barrels per day (BPD) if crude oil prices exceed OPEC?s basket price range of US$22-28 per barrel for 20 successive days, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Wednesday.

?The output increase is necessary when prices exceed the current price range,? Purnomo told reporters, adding that the country?s proposal would be submitted to OPEC in its meeting in Osaka, Japan, on Sept. 19.

Purnomo further said Indonesia would also propose in the Osaka conference that OPEC cut its current production quota if its basket price range was below $22 per barrel for 10 successive days.

He said OPEC should stick to the $22-28 price range.

Meanwhile, Indonesia?s oil price assumption for its 2002 state budget is set at $22 per barrel, while proposed oil price assumption for next year?s state budget is $20 per barrel. (godang)