OPEC to formally ask non-members to increase world oil supply

Wednesday, June 16 2004 - 10:56 AM WIB

The Organization of Petroleum Exporting Countries (OPEC) will officially call on non-member producers to increase output in a bid to push world prices down, OPEC president Purnomo Yusgiantoro said on Wednesday.

"OPEC will send official letters to non-OPEC countries such as Mexico, Angola, Oman and Russia. We will ask them to increase their production to curb rising oil prices," Purnomo, who is also Indonesia's energy and mineral resources minister, toldreporters.

He said OPEC believes non-member producers all still have spare capacity.

Purnomo said the letters would be sent as soon as possible but gave no date.

Non-OPEC oil producers account for about 60 percent of global production.

OPEC itself has pledged to increase output by 2.5 million barrels a day by Aug. 1.

World oil prices slipped on Tuesday in New York as the anticipated boost in OPEC output outweighed concern at a sabotage attack on a key Iraqi pipeline.

New York's benchmark contract, light sweet crude for delivery in July, dropped 40 cents to US$37.19 a barrel. (*)

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