Anticipating the fall of world oil price:

Government to Propose Production Cut
07 Maret 2001

TEMPO Interaktif, Jakarta:Indonesian government will suggest OPEC (Organization of Petroleum Exporting Countries) member countries to decrease their oil production. The decrease is important in anticipating the fall of world oil price due to overproduction. Minister of Energy and Mineral Resources Purnomo Yusgiantoro made the comment in a meeting held at Merdeka Selatan Palace here today.

Purnomo added that the suggestion would be officially proposed at the upcoming OPEC conference that would be held on March 16 in Vienna, Austria. However, according to Purnomo, the amount of the proposed cut still depends on the market’s fluctuations. “Just wait and see. Before the conference we will have surely been able to suggest the amount,” he said.

Purnomo estimated that in the second quarter of this year the oil price would constantly plummet due to overproduction. He also predicted that current oil prices ranging from US$25 to 30 per barrel would drop under US$20. “Therefore, we view the proposal is urgent as an anticipation to the drastic fall,” Purnomo said.