Indonesia to recommend OPEC output increase at Caracas meeting

Jakarta (Platts)--17Apr2006

Indonesia will recommend that OPEC increase its production at the
upcoming meeting in Caracas if international oil prices remain high,
Indonesia's OPEC governor, Maizar Rahman, said Monday.

"We will monitor the market. But if the oil price stays high, we may
propose that OPEC increases its production at the next meeting," Maizar told
Platts. "Indonesia wants a lower oil price. This means that OPEC should not
cut its production and if possible it should increase its output."

OPEC members will meet in Caracas, Venezuela, on June 1 to discuss the
market conditions.

OPEC's eleven members, including Iraq, pumped an average 29.76 million
b/d of crude in March, down 160,000 b/d from February's 29.92 million b/d, a
Platts survey of OPEC and oil industry officials showed Monday.

Excluding Iraq, production from the ten members with quotas fell by
190,000 b/d to 27.94 million b/d and below the group's official 28 million b/d
output ceiling.

Maizar also said it would take OPEC time to raise production because most
members were already producing at their maximum capacity. "If the cartel wants
to increase the production, it takes time," he said.

The current oil prices could also have an impact on developing countries,
including Indonesia, Maizar said.

"The current high oil price will be a problem for developing countries,
including Indonesia," he said adding that prices were being pushed higher by
concerns over Iran's nuclear plans and supply disruptions in Nigeria.

Maizar spoke as New York Light sweet crude oil futures hit a seven-month
high of $70 in electronic trade early Monday. The new key June Brent contract
on London's Intercontinental Exchange also surged early Monday, trading at
$71.40/barrel last at 0140 GMT, jumping by 83 cents/barrel from last
Thursday's $70.57/barrel settle, breaching an all time high record.

--Anita Nugraha, newsdesk@platts.com

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