OPEC to discuss demands for higher quotas at Osaka meeting

OPEC will discuss demands from member countries Nigeria and Algeria for higher quotas at the upcoming mid-September meeting in Osaka, Japan, Minister of Mineral Resources and Energy Purnomo Yusgiantoro said Tuesday.

He said that a special committee had been set up to study the demand and its possible impact on oil price.

But he said that it was still not certain whether a decision could be taken at the Osaka meeting. He said that the discussion on the demands for higher quotas was only one of the agenda of the meeting.

Nigeria and Algeria have been demanding for higher quotas. Nigeria currently has a production capacity of 2.6 million barrel per day with a quota of 1.79 million bpd. Meanwhile, Algeria has a production capacity of 1.1 million bpd with a quota of 693,000 bpd.

In June 2002, OPEC (excluding Iraq) produced an average of 23.22 million oil bpd, while its overall quota is set at 21.70 million bpd.

Elsewhere, Purnomo said that international oil price would likely to remain weak in the near future due to weak global economy and huge oil stock in the hands of consumers.

He added that the poor compliance of certain non-OPEC country like Russia in limiting oil supply to the market was another factor causing a bleak outlook on international oil price.(Alex/Godang)