OPEC Sets Oil Price at US$60 Per Barrel
Friday, 22 December, 2006 | 15:44 WIB

TEMPO Interactive, Jakarta: The Organization of Petroleum Exporting Countries (OPEC) wants that the world's crude oil price remains stable at US$60 per barrel next year. The price stability will be required either for consumers or producers so that there will be economic growth.

Head of OPEC Board of Governors Maizar Rahman explained yesterday (12/22) that his organization will cut production should the price decrease to below US$60 per barrel in order to stabilize the price. In fact, OPEC has planned to increase production if the price is above US$60. “We will maintain the price around the rate,” he said in Jakarta.

According to him, if the world's oil supply meets the demand, or even exceeds it, then the geopoltical factor will not affect much in increasing the price. Next year, oil production will increase two million barrels per day: 200 thousand barrels per day from OPEC, and 1.8 million barrels per day from non-OPEC. The demand increases 1.3 million barrels per day so that the surplus of production will be 700 thousand.

Therefore, OPEC will cut production to 500 thousand barrels per day as of February 2007 to stabilize the price. “It was the agreement of the meeting in Nigeria last week,” said Maizar. As a result, the world's oil price will rise US$1-2 per barrel to around US$62 per barrel.

MUHAMAD FASABENI