Indonesia’s entry to complicate matters for OPEC?

By FXStreet FXStreet (Mumbai) – The oil markets are eyeing the OPEC meet to see if the cartel cuts production to boost prices.

However, there is another matter that could make a output cut difficult. Indonesia, the Southeast Asian country had asked OPEC earlier this year to reactivate its membership. The nation had suspended its membership earlier this year.

Indonesia produces only 850,000 barrels of oil a day—half of which it consumes. So 425,000 barrels are being, supplied to world markets. Its total produce is just a fraction of the 30 million barrels a day that OPEC members produce.

Nevertheless, the oil markets are so excessively supplied that a small addition to supply could make matters worse.

A point worth noting is that Indonesia is a net oil importer and would prefer lower oil prices. Its entry into OPEC would mean another member in support of maintaining oil supply unchanged.
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Source:: FX Street