OPEC should raise output further if possible: Indonesia's Purnomo

Jakarta (Platts)--13Jul2005

Indonesia feels OPEC should raise its crude production even beyond the current
high levels in order to cool down prices, oil minister Purnomo Yusgiantoro
said Wednesday. 

The country had conveyed this view to OPEC, Purnomo told reporters in Jakarta,
but acknowledged at the same time that there were "limitations" on OPEC's
production. OPEC cranked out an additional 80,000 b/d of crude in June to push
average production over the month up to 30.1-mil b/d, a Platts survey found.
Excluding Iraq, the 10 members bound by output quotas pumped an average
28.25-mil b/d, 50,000 b/d higher than May and above their 27.5-mil b/d
combined ceiling. Only OPEC kingpin Saudi Arabia has any significant spare
capacity left, and a few members including Indonesia are actually
underproducing their quotas. Indonesian output is languishing way below its
1.425-mil b/d quota at 950,000 b/d, Platts survey showed.

Last Friday, a day after US light crude futures hit a record $62.10/bbl, OPEC
president Sheikh Ahmed Fahed al-Sabah said he was about to restart
consultations on whether the group should go ahead with a second 500,000 b/d
output increase. But Sheikh Ahmed said he doubted world markets needed more
oil and attributed the current high prices to geopolitical tensions and global
refining constraints rather than a shortage of crude. 

Saudi Arabia pumped 9.5-mil b/d in June, slightly below the May level of
9.55-mil b/d. The Saudis have said they can produce as much as 11-mil b/d but
that there is no demand for the extra 1.5-mil b/d of mostly heavy crude
because the global refining system does not have sufficient upgrading capacity
to process it.

Read more about OPEC in Platts OPEC Guide
http://www.platts.com/Oil/Resources/News%20Features/opec/index.xml