Rus News Journal

The head of the OPEC suggests to reconsider a price band

the President of the OPEC, the Minister of Energy and a mining industry of Indonesia Purnomo Jusgiantoro considers that existing now for baskets the OPEC established in 2000. The price band 22 - 28 dollars/ barr is time for correcting in the big party on 6 - 8 %
Among the reasons of growth of a price band the president named inflation, economic depression, seasonal growth of demand for gasoline, decrease in a dollar exchange rate and a difficult situation in the Near East. Thus he has assured that the OPEC will do all for extraction increase oil cartel member countries, and also plans to carry on negotiations for the similar oil policy with other countries, including with Russia.
now the OPEC and manufacturers, in cartel not entering, co-operate well. But it is really necessary for us, that those who out of the OPEC, too have increased extraction. It would make psychological impact on the market where speculative tendencies are strong, and would allow hardly to reduce the prices. They and so decrease, but slowly the edition " gives of a word of the head of the OPEC; Time of News .
the President of cartel also has declared that is going to visit Russia in the autumn: In September I will have a talk in Moscow about possibilities of an investment of money to Russia particularly for the Indonesian investors. Our large state company Pertamina now becomes more active and outside of the country. It has concession in Iraq, adjusts cooperation with neighbours in Jugo - East Asia, for example with the Malaysian oil company Petronas and with Vietnamese Petrovetnam .
In the meantime following the results of the auctions on July, 12th 2004. On International Petroleum Exchange (London) and New York Merchantile Exchange (New York) the prices for oil of the next month of delivery have gone down and have made according to (dollars/ barr.): Brent - 36. 63 (- 0. 42); Light Sweet Crude - 39. 50 (- 0. 46).
According to analysts, falling of the prices for oil is connected by that participants of the market expect official coming into force of the decision of the OPEC about increase in extraction since August, first for 0. 5 million barr./ day. Almost 5 - percentage reductions of prices on August natural gas also has brought the contribution to oil depreciation. However, the majority of analysts converge to opinion that the OPEC cannot quickly increase oil recovery volumes to satisfy a growing demand, and consequently the prices on oil will grow and further.