Indonesia in favor of OPEC maintaining output: Purnomo

Jakarta (Platts)--29Nov2005

Indonesia will propose that OPEC maintain its current output when the
cartel meets in Kuwait on Dec 12, because oil prices could still spike if
there are cold spells during winter, oil minister Purnomo Yusgiantoro said
Tuesday.
     "In OPEC's meeting next month, we will propose that OPEC not cut its
output," Purnomo told reporters. He conveyed the same message to lawmakers in
a meeting with parliament Monday.
     Indonesia is one of OPEC's smallest producers, its 930,000 b/d estimated
crude output only exceeding Qatar's 800,000 b/d, based on Platts survey of the
industry. The country has been underproducing its OPEC quota of 1.451-mil b/d.
     Benchmark WTI crude has lost almost $14/bbl since its all-time high trade
of $70.85 on Aug 30, when Hurricane Katrina hit the oil- and gas-producing and
refining center of the US Gulf of Mexico. 
     With crude prices continuing to soften since late last week as unusually
mild temperatures in the US have curbed heating oil demand, the market has
focussed its attention on what output decision OPEC might take at its upcoming
meeting. So far, OPEC ministers have signalled the group will likely keep
supplies steady.
     At its last meeting in September, OPEC agreed to offer its reserve
production capacity of 2-mil b/d to the world market for three months starting
Oct 1. The move effectively suspended the group's formal output quotas, which
it normally uses to regulate supply and influence prices.

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