OPEC: Dollar Is The Best

OPEC president Purnomo Yusgiantoro said the cartel won't adopt the euro to replace the dollar as the currency for oil sales, explaining that countries which are OPEC members have different markets.

?I think the dollar is still the best,'' Purnomo told reporters in Jakarta.

The euro held near a record high against the dollar in Asia today after Russia's central bank said it may raise holdings of the European currency. A weaker dollar makes dollar-denominated oil cheaper for buyers using other currencies and reduces the buying power of countries that export oil.

OPEC is pumping at its highest rates in 25 years after crude oil prices last month soared to $55.67 a barrel in New York, the highest in more than two decades of futures trading. Crude has since fallen 12 percent on reduced concern about shortages and disruptions to supply from Iraq, Nigeria and Russia.

Yusgiantoro said the government is planning fiscal incentives, including tax cuts, to encourage overseas energy and mining companies to develop deposits in the country.

"It can be done in the form of a joint ministerial letter or in a presidential decree,'' he said. "We don't know the details yet but it may include some tax cuts. As you know, it is expected to lure investors. Our investment in mining has been falling, while spending on oil and gas has been stagnant.''