Indonesia to propose oil production cut at OPEC meeting
Indonesia will propose an oil production cut for all member countries at the upcoming meeting of the Organization of Petroleum Exporting Countries (OPEC) in Vienna, a minister said Wednesday.
"I will propose that OPEC agree to a cut in production in the next meeting in Vienna on March 16," Energy and Mineral Resources Minister Purnomo Yusgiantoro said after meeting Vice President Megawati Sukarnoputri.
Purnomo, however, declined to say how big a cut Indonesia would suggest, saying it would depend "on the market situation which keeps changing." Last month, Purnomo had suggested a cut of up to two million barrels per day for OPEC.
"If there is no production cut, it is feared that in the second quarter oil prices could slide to as low as $20 per barrel because of oversupply and decreasing demand," Purnomo said. OPEC decided in mid-January to cut production by 1.5 million barrels per day (bpd), effective from February 1 to steady prices.
Indonesia's oil production is currently at around 1.3 million bpd.–AFP.
©--Agence France Presse 2001.
© 2001 Mena Report (www.menareport.com)