OPEC won't bow to American pressure: Subroto
Friday, March 24 2000 - 04:00 AM WIB
Former Secretary General of Organization of Petroleum Exporting Countries (OPEC) Subroto said the oil organization would not bow to the pressure of any countries, including the United States, to raise its oil quota, Neraca daily reported.
He said on Thursday no force from outside OPEC was able to influence the organization in formulating its policy throughout history.
"OPEC formulates its policy based on a regular study on the global supply and demand structure. If there is an oversupply, OPEC will automatically cut its oil quota. If the market lacks supply, OPEC will increase its oil quota," Subroto said.
He noted OPEC includes three hawkish producers Iran, Iraq, Libya, which will most certainly turn deaf ears to the U.S.
"I understand that the three countries object to quota increase proposal. They would rather see the development in the oil price in the next three months. They are convinced that oil price usually drops in the beginning of summer without oil quota increase," Subroto said.
"This proves right. The oil price has dropped US$6 to around $25," Subroto said. (*)