RI faces risk at upcoming OPEC meeting
Saturday, November 3 2001 - 03:25 AM WIB
The upcoming Nov. 14 OPEC meeting may discuss the possibility of lowering the cartel?s oil price range target to US$20-26 per barrel from the current $22-28 per barrel, according to Minister of Mineral Resources and Energy Purnomo Yusgiantoro.
Purnomo was quoted by Kompas daily as saying that if the proposal to lower the price range target was accepted, OPEC may only struggle to avoid oil price from falling below $20 per barrel.
He said that this could create risk to Indonesia, which assumes an oil price of $24 per barrel in the current 2001 state budget, and $22 per barrel in the 2002 state budget.
Indonesia, the only OPEC member in the region, relies heavily on oil revenue to finance its state budget, which is facing a risk of greater deficit amid the rising uncertainty in the world?s economy.
International oil price has been in downward trend following the Sept. 11 terrorist attacks on the U.S.(*)