RI expects OPEC to cut output in spring
Tuesday, February 20 2001 - 04:00 AM WIB
Indonesia expects OPEC to reduce its output in the upcoming spring season in a bid to help raise international oil price, and to anticipate declining world consumption during the season, according to Minister of Mineral Resources and Energy Purnomo Yusgiantoro.
Speaking at a gathering with executives of oil and gas firms in Jakarta Tuesday, Purnomo said that it was in the interest of Indonesia to see OPEC to cut down its current output of 26.5 million barrel per day as international oil price was already hovering at around Rp US$24 per barrel.
The government assumes oil price of $24 per barrel in the current 2001 state budget. If oil price drops below that level, it would create a serious threat to the budget.
Purnomo also said that the reduction in the OPEC output would be in line with the expected 1.5 million bpd decline in world oil consumption in spring.(Alex)