RI to propose 1 million bpd output cut at OPEC meeting

Indonesia will propose a 1 million barrel per day oil output cut at the upcoming Nov. 14 OPEC meeting in a bid to help stabilize sagging prices, according to Minister of Energy and Mineral Resources Purnomo Yusgiantoro.

Purnomo said Wednesday that since fourth quarter demand was expected to drop by 500 bpd, the 1 million bpd cut was necessary to bring back oil prices to an average level of around US$22 per barrel from the current lows of around $18 per barrel.

He also said that non-OPEC members should also contribute in the efforts to lift oil prices.

Indonesia is the only OPEC member in the region. The country?s relies heavily on oil revenue to support the state budget which assumes an oil price average of $24 per barrel in the current budget, and $22 in the next 2002 budget.

International oil price has been on the decline amid the global economic slump, worsens by the Sept 11 terrorist attacks in U.S.(Alex)