Indonesia pulls out of OPEC to cover its domestic demand

The Organization of Petroleum Exporting Countries loses its only member in Southeast Asia. Indonesia has been in the organization since 1962 and used to export oil and cover its domestic demand by the traditional output of about 1,5 million barrels of crude a day. But Indonesia’s reserves are running out and the daily output dropped to less than 900,000 barrels a day while domestic demand has risen up to 1,1 million barrels a day making Indonesia a net consumer of oil. Oil exports haven’t made up a considerable quota in Indonesia’s national income for years and Indonesia now focuses on covering the demand of its rising population and thriving economy.

Though the International Energy Agency expects a declining demand of about 80,000 barrels a day in those Asian countries which reduced their fuel subsidies recently, the price of oil remains high and will not go down until populous countries cut their subsidies on fuel significantly prompting hundreds of thousand of middle-class Indians and Chinese to cut their energy consumption. 


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