Purnomo confident of production boost

OPEC president Purnomo Yusgiantoro said he was confident members would agree to increase the oil production ceiling when they meet in Amsterdam next week due to soaring crude oil prices.

Purnomo said members of the Organisation of Petroleum Exporting Countries would discuss Saudi Arabia's proposal to increase output by 1.5 million barrels per day.

"All OPEC members are concerned about this and my feeling is that they should agree (to a higher oil output) as we need to stabilise the price," he told a press conference Thursday.

Purnomo described the Saudi proposal as "quite positive".

The informal OPEC meeting is scheduled for next week on the sidelines of the 9th International Energy Forum in Amsterdam.

OPEC sources said the meeting in Amsterdam would be on May 21.

It comes ahead of OPEC's extraordinary conference in Beirut on June 3.

Purnomo said OPEC would also meet non-OPEC producers and consumers to discuss rising crude oil prices, which on Wednesday hit their highest level in 13 years at above US$40 per barrel.

Traders have blamed lingering security concerns in Iraq and rising US demand.

"We ask OPEC members to produce above their quota for the sake of securing the world supply of oil," Purnomo said.

He said any interest rate rise by the US Federal Reserve could prolong the rise in world oil prices and put developing countries at risk of a recession.

"This is what we are concerned about," he said.

Yusgiantoro added that OPEC was still considering whether to revise its oil price band range of $22-$28 per barrel under which it pegs its production quota.(*)