Friday, May 30, 2008

Indonesia Not Gonna Export Oil, So They Leave OPEC

Indonesia announced this week it will be leaving OPEC. We doubt consumers will give a hoot about this nugget. But it’s still interesting to your editors.
Indonesian officials said that the country’s demand for crude matched with dwindling national output leaves it no choice but to leave the oil cartel. In fact, Indonesia probably no longer qualifies for the club. Most gauges suggest the country is a net importer of crude.
“If you were Indonesia,” asks our colleague Martin Hutchinson in this morning’s issue of Money Morning, “which countries would you rather have as your buddies? A bunch of sleazy, corrupt, idle ‘lottery winners’ such as Nigeria, Venezuela and Angola? Or would you prefer a set of hardworking and diligent neighbors such as Singapore, Malaysia and Thailand? Not to mention two of the largest-growth economies in the world: India and China?
“Believe me, when Indonesia left OPEC, it wasn't to save the paltry $3 million annual dues. Like Groucho Marx, Indonesia decided it didn't want to be a member of a club that had such low standards for membership.”

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