Purnomo to visit Russia to discuss oil output
Tuesday, December 30 2003 - 12:07 AM WIB
Purnomo, who will also be OPEC's president from Jan. 1, was quoting data from traders and market analysts, which he said is "more reliable than other sources" and reflects the current market situation.
He said the surplus in crude stocks will rise to more significant levels by the start of the second quarter of 2004, when demand is expected to fall, and in turn this will affect prices.
To stabilize oil prices in the future, OPEC needs to discuss output with non-OPEC members, Purnomo said, but added it will be difficult to ask Russia to cut output now when prices are high.
"I plan to visit Russia and to meet (President) Vladimir Putin to discuss the matter," he said, but didn't reveal any timeframe for the trip.
Russia is one of the world's largest oil producers.
He said, "fundamentally" the oil market will be weak next year. "It will be a challenge for us - unlike this year, which has been a golden year for OPEC."
He also said the U.S. wants crude oil prices to be below $25 a barrel. Earlier this month, Purnomo said U.S. Secretary of Energy Spencer Abraham had expressed concern about the price of oil, though a spokeswoman for Abraham later refused to discuss Purnomo's comments.
"The U.S. wants oil prices at that level as they plan to hold general elections next year," Purnomo said, adding higher oil prices would hit the U.S. economy. He didn't elaborate further.(*)