JAKARTA, 12 May 2004 — OPEC President Purnomo Yusgiantoro said yesterday he was consulting members of the oil producers’ group on Saudi Arabia’s proposal to raise crude supplies but no decision had been made yet. Saudi Arabia called on the Organization of Petroleum Exporting Countries to raise supply limits by at least 1.5 million barrels per day (bpd) to prevent high crude prices from derailing global economic growth.
“There is a proposal from Saudi Arabia. In principle, OPEC’s decision can be decided if there is unanimous agreement. I have already sent a letter to all OPEC members about the (Saudi) proposal and we are awaiting responses from them.”
Meanwhile, Algeria’s Energy and Mines Minister Chakib Khelil said yesterday Saudi Arabia is the only OPEC member with enough spare production capacity to increase crude oil output. But he added that it would still not be enough to cool current high oil prices, which touched 13 1/2-year highs of $40 a barrel in the US last week.
“It is Saudi Arabia which has the capacity to produce more oil, but even if they do it will have no impact on the prices, which will remain high,” Khelil told reporters in the Algerian capital. The head of the International Energy Agency, Claude Mandil, yesterday praised the Saudi call to raise output quotas. “It doesn’t necessarily mean it would actually increase output, but it was a very good and commendable move to recognize that supply matters,” said Claude Mandil, the head of the Paris-based energy watchdog for most of the world’s consuming nations, during a press conference.