Opec cautious on prospects for drop in oil price

JAKARTA – Opec president Purnomo Yusgiantoro expressed caution yesterday about prospects for an early fall in world oil prices.

“It was going down but there were incidents in Nigeria and Venezuela which will likely affect the price but those are non-fundamental factors. Yesterday (the price) went down but later rose and today it was down again,” Yusgiantoro, who is also Indonesian Energy Minister, told reporters before a cabinet meeting.The Organisation of Petroleum Exporting Countries decided last week to raise its crude oil output ceiling to cool prices, which had risen to more than US$40 a barrel and threatened to slow the world economic recovery.The cartel said after a special meeting in Beirut it would raise its output ceiling by 2,5 million barrels per day to 26 million barrels per day in two stages by August 1.Asked if prices would fall in the third quarter, Yusgiantoro said: “We hope it will go down again but it depends on the extent of the effects of non-fundamental factors because those are unpredictable.”He said there “will be an increase in demand, two million barrels a day as we enter summer, but we will increase production by two million barrels a day.”Yusgiantoro also said Opec is awaiting further studies before changing its current US$22-US$28 price target range.- Nampa-AFPYesterday (the price) went down but later rose and today it was down again,” Yusgiantoro, who is also Indonesian Energy Minister, told reporters before a cabinet meeting.The Organisation of Petroleum Exporting Countries decided last week to raise its crude oil output ceiling to cool prices, which had risen to more than US$40 a barrel and threatened to slow the world economic recovery.The cartel said after a special meeting in Beirut it would raise its output ceiling by 2,5 million barrels per day to 26 million barrels per day in two stages by August 1. Asked if prices would fall in the third quarter, Yusgiantoro said: “We hope it will go down again but it depends on the extent of the effects of non-fundamental factors because those are unpredictable.”He said there “will be an increase in demand, two million barrels a day as we enter summer, but we will increase production by two million barrels a day.”Yusgiantoro also said Opec is awaiting further studies before changing its current US$22-US$28 price target range.- Nampa-AFP