Purnomo urges OPEC to increase intervention price band

Minister of Energy and Mineral Resources Purnomo Yusgiantoro urged OPEC to change its price band range formula as it was no longer suitable to reflect current oil market condition.

?As war with Iraq looms, price of oil had been hovering above US$ 30 per barrels, despite abundant stock in consumers? countries. I therefore propose OPEC to change its intervention band forlula which better reflect current condition,? Purnomo told repoters Thursday.

Under the formula, OPEC will increase supply above quota if oil reach above $ 28 per barrel and would cut production if the price stays below $ 22 per barrels.

?OPEC will need to increase the price band,? said Purnomo without giving specific number.

"We want OPEC to maintain the existing quotas while monitoring the developments on the ground (regarding) the situation in Iraq."

Purnomo said if US really strike Iraq, Saudi Arabia, UAE and Kuwait had expressed readiness to pump more oil to make up for Iraq production. (godang)