Indonesia re-joins OPEC in December after seven years of absence

It was announced yesterday that Indonesia will re-join the group of OPEC countries in December, seven years after leaving it, despite the fact that Indonesia is still no longer a net exporter of oil - normally a prerequisite for OPEC membership, according to OPEC statutes.

Indonesia's renewed membership will drive OPEC production up by a good 800,000 barrels per day next year, which will require the production target to be raised, says Commerzbank.