Indonesia's Purnomo sees oil price of $58-$60/barrel in 2007

Jakarta (Platts)--10May2006

Indonesian oil minister Purnomo Yusgiantoro said Wednesday he expected
oil prices to fall to a level of $58-$60/barrel as fundamentals play a bigger
role in determining price, which is currently being held aloft by the
continuing row over Iran's nuclear program.
Purnomo told reporters that he hoped that the Iranian crisis could be
resolved through diplomacy. The current price of oil was influenced by
non-fundamental factors such as tensions over Iran, Venezuela and the loss of
barrels from Nigeria, he said.
"Next year non-fundamental factor will not influence the oil price much
and oil prices will go back (to being affected) by supply demand
fundamentals," saying he believed they would fall back from levels above
$70/barrel currently to the $60/barrel level.
"Currently the world is over-supplied," he said.

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