No need for OPEC to add supply - Indonesia minister

Written by:
Subscribe to Oneindia News

JAKARTA, Oct 17 (Reuters) There is no need for OPEC to add more supply to the oil market after recently adding 500,000 barrels per day of additional supply, Indonesian Energy Minister Purnomo Yusgiantoro said today.

He said soaring crude oil prices were due to geopolitical factors and that there was currently no sign of OPEC calling an emergency meeting.

''There is no fundamental factor on supply and demand,'' the minister told Reuters by telephone, pointing to geopolitical factors such as tensions between Turkey and Kurdish separatists in northern Iraq.

''With 500,000 bpd of recent OPEC policy to add supply ..actually there is no need for more in addition,'' he said.

Indonesia is OPEC's second-smallest producer within the cartel and Asia-Pacific's only member.

Yusgiantoro said the fluctuations in the oil market were difficult to assess at this time.

''The oil price development is amazing, but no one can predict it.'' Oil yielded little ground today, staying within sight of its record high amid renewed investor appetite built on fears of rapidly tightening supplies this winter and a revived Middle East risk premium.

After surging more than 10 per cent in six straight days of gains, US crude slipped 13 cents to 87.48 dollars a barrel at 0800 hrs IST. Prices gained 1.48 dollars yesterday and touched a new intra-day high of 88.20 dollars, their third record peak in a row.

The latest surge has taken prices deep into uncharted territory, nearing the inflation-adjusted peak of 1980 and causing anxiety within OPEC and the US administration who fear it may put the world economy under even more pressure.

Reuters RN DB1102

Please Wait while comments are loading...