Purnomo sees Q2 oil prices 'even higher', against OPEC output cut

Jakarta (Platts)--9Jan2006

Indonesian energy minister Purnomo Yusgiantoro Monday said there is no
need for OPEC to cut output because oil prices in the second quarter of 2006
will be stronger than current levels. 
     "I see oil prices remaining strong in the second quarter. Therefore OPEC
will not need to cut production," Purnomo told reporters without elaborating.
     Purnomo also said Indonesia will be comfortable if the official
Indonesian Crude Price stayed between $50-55/bbl. 
     The official Indonesian Crude Price or ICP formula is a weighted average
of spot crude assessements of 11 Indonesian grades by Platts (40%), RIM
Intelligence (40%) and Asian Petroleum Price Index (20%). The ICP averaged at
$54.85/bbl in December.
     Recent comments by OPEC officials have added to expectations that OPEC
will defer a possible output cut when the group meets in Vienna on Jan 31. 
     OPEC's new acting secretary general Mohammed Sanusi Barkindo and
Indonesia's OPEC governor Maizar Rahman last week said there was no immediate
need for an output cut as long as prices hovered in the low $60s/bbl. 
     Benchmark February West Texas Intermediate crude futures were trading at
$64.21/bbl at 0800 GMT, flat from Friday's close on the New York Mercantile
Exchange. The contract rose by $1.42/bbl in Friday's New York session, pulled
higher by products futures. 
     OPEC ministers last met in Kuwait City Dec 12 and agreed to maintain the
group's formal ceiling at 28-mil b/d and review the situation in Vienna on Jan
31.

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