Purnomo: High prices due to non-fundamental issues
Monday, August 16 2004 - 01:13 AM WIB
The Organization of Petroleum Exporting Countries' President Purnomo Yusgiantoro said on Sunday that the current high oil prices are not because of supply and demand imbalance, but due to non-fundamental factors, the Dow Jones Newswires and The Jakarta Post reported.
"There's an oversupply of crude oil of between 1.5 million and 2 million barrels per day in the market, but oil prices remain high," Purnomo, who is also the Indonesian Oil and Mine Minister, told reporters. "So, the problem is not supply and demand imbalance."
He attributed the current red hot oil prices mainly to concerns over security problems in Iraq, the troubles with Russia's oil giant Yukos, and domestic politics in Venezuela.
Purnomo said that oil prices may fall to $30 a barrel next year if all of those problems are resolved. (*)