Opec eases output curbs to stabilise prices
March 11, 2004
Jakarta - The president of the Organisation of Petroleum Exporting Countries said Thursday the cartel will allow member states to raise output to stabilise high world oil prices.
"We have a tolerance, they can increase their production in the framework of stabilising prices," Purnomo Yusgiantoro, who is also Indonesia's energy minister, told reporters.
Yusgiantoro said Opec will go ahead with its previously agreed one million barrels per day output reduction next month but a temporary production increase was allowed under Opec policies if oil prices exceed $28 per barrel.
"Leakage is allowed in the framework of assuring security of supply to the world market," Yusgiantoro said.
New York's benchmark light sweet crude April contract stood at $36.10 a barrel on Wednesday.
Yusgiantoro said current production levels and world oil prices will be reviewed soon and a further decision on production be taken.
"If we later see that in this spring season there is a oversupply, we may take steps," he said without elaborating. - AFP
|
|
