Opec will probably have to lift oil output limits by more than 10 percent to have any hope of driving down crude prices, cartel President Purnomo Yusgiantoro said on Thursday.
Purnomo told reporters the Organisation of the Petroleum Exporting Countries was studying three options for lifting production quotas at its June 3 meeting in Beirut, based on estimates that it is already pumping 2.3 million barrels daily above existing formal quota limits.
He acknowledged in Jakarta that with estimates of Opec production already that much over official output limits, anything less than 2.3 million bpd would do little to reassure traders of more supply.
He said the options were for increases of two million bpd, 2.3 million, or for more than 2.3 million.
"The third (option) we have a significant increase so as to give a psychological impact to reducing oil prices," Purnomo said.
"The first option is below the current leakage. I think if we do that it will not have a significant impact in reducing the oil price," said Purnomo, who is also Indonesia's oil minister.
Leading Opec producer Saudi Arabia has already made a commitment to deliver real extra volumes of about 10 percent in June, to 9.1 million bpd whatever Opec decides. It wants group limits to increase to as much as 26 million bpd, up 2.5 million bpd from 23.5 million now.
But with all others in Opec already pumping at full capacity, the increase in the group's formal production limits is not likely to make much difference to actual crude supply from the rest of the cartel.
Purnomo said even an increase of 2.3 million bpd would not necessarily cool prices.
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