AUSTRALIA: PRESIDENT OF OPEC SAYS THAT THE WORLD OIL MARKET IS RUNNING WITH A SURPLUS SUPPLY OF ABOUT 1.5 MILLION BARRELS A DAY

Record ID: 344818

  • Title: AUSTRALIA: PRESIDENT OF OPEC SAYS THAT THE WORLD OIL MARKET IS RUNNING WITH A SURPLUS SUPPLY OF ABOUT 1.5 MILLION BARRELS A DAY
  • Date: 9th September 2004
  • Summary: (W2) SYDNEY, AUSTRALIA (SEPTEMBER 8, 2004) (REUTERS) 1. OPEC PRESIDENT PURNOMO YUSGIANTORO WALKING TO PODIUM; MV PEOPLE LISTENING 2. (SOUNDBITE) (English) OPEC PRESIDENT PURNOMO YUSGIANTORO, SAYING: "Our organisation has spare production capacity of around one to 1.5 million barrels of oil per day which would allow for an immediate additional increase in production, and fruthermore in response to expected demand growth in the near futures, member countries have plans in place to further increase capacity by at least one million barrels of oil per day towards the end of this year and into they year 2005." 3. PURNOMO SPEAKING 4. (SOUNDBITE) (English) OPEC PRESIDENT PURNOMO YUSGIANTORO, SAYING: "At the present time, the exceptional factors in the market which I referred to earlier may be responsible for adding up to 10-15 dollars to a barrel of crude. This is a substantial proportion of the price of between around a quarter and a third. In such situations there is unlimited room for monoever in regard to effective market stabilisation measures." 5. DELEGATES LISTENING 6. (SOUNDBITE) (English) OPEC PRESIDENT PURNOMO YUSGIANTORO, SAYING: "We are prepared to act at any time in the best interests of order and stability as we have done so often in the past. Nevertheless we have been as surprised as anyone else by the turn in the market this year and we have taken the appropriate measures." 7. WOMAN LISTENING; PURNOMO STANDING AT PODIUM 1.47 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 24th September 2004 13:00
  • Keywords:
  • Location: SYDNEY, AUSTRALIA
  • Country: Australia
  • Reuters ID: LVA9MSPH6N7JOM6DLMRLX3XERIC7
  • Story Text: The President of OPEC has said that the world oil
    oil market is running with a surplus supply of about
    1.5million barrels a day.

    The President of the Organisation of Petroleum
    Exporting Countries (OPEC), which supplies a third of the
    world's crude oil, has said they can raise production
    capacity by one to 1.5 million barrels a day by year-end.

    "Our organisation has spare production capacity of
    around one to 1.5 million barrels of oil per day which
    would allow for an immediate additional increase in
    production, and fruthermore in response to expected demand
    growth in the near futures, member countries have plans in
    place to further increase capacity by at least one million
    barrels of oil per day towards
    the end of this year and into they year 2005," OPEC
    President Purnomo Yusgiantoro said.

    Cartel members meet on September 15 in Vienna to set
    supply policy for the fourth quarter.

    Purnomo said that political and other global-based
    risks had accounted for a rise of between $10 and $15 per
    barrel.

    "At the present time, the exceptional factors in the
    market which I referred to earlier may be responsible for
    adding up to 10 to 15 dollars to a barrel of crude. This is
    a substantial proportion of the price of between around a
    quarter and a third. In such situations there is unlimited
    room for monoever in regard to effective market
    stabilisation measures."
    Purnomo said that 10 OPEC members with output quotas,
    which excludes Iraq, were pumping about 2 million barrels
    per day above the formal limits.

    Demand for gasoline peaks in the summer vacation months
    in the United States, the world's biggest consumer, while
    consumption of heating fuels rises to a seasonal high
    during winter in the northern hemisphere.

    However, Purnomo said APEC was working to keep the oil
    market stable.

    "We are prepared to act at any time in the best
    interests of order and stability as we have done so often
    in the past. Nevertheless we have been as surprised as
    anyone else by the turn in the market this year and we have
    taken the apropriate measures."
    Some OPEC countries say the price target, set in March
    2000, should be revised to reflect new market conditions.


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