Purnomo says OPEC to go ahead with output hike plan: Report

The President of the Organization of Petroleum Exporting Countries (OPEC) Purnomo Yusgiantoro reiterated on Wednesday that the group will go ahead with its plan to increase crude oil output by 500,000 barrels a day starting Aug 1, the Dow Jones Newswires reported on Wednesday.

"OPEC will go ahead with the plan to boost output by 500,000 b/d Aug. 1 as the nomination for the increase has been done since early July," he said.

Purnomo's statement came after some officials from members of the Organization Of Petroleum Exporting Countries indicated that the group might cancel the hike as oil prices had slid since last month's decision to increase output in two stages.

But oil prices have crept higher on speculation that OPEC may cancel the planned August hike, and on supply concerns prompted by output disruptions in Iraq and more recently in Nigeria.

In a move intended to cool rocketing oil prices, OPEC ministers agreed last month in Beirut to increase the group's official output ceiling by 11% to 26 million b/d. Two million b/d of that increase was effective July 1, with a further 500,000 b/d scheduled to be added to the target from Aug 1. (*)