 |
|
OPEC 160th Meeting Concludes
|
The Conference reviewed recent oil market
developments, as presented by the Secretary General, in particular
supply/demand projections, as well as the outlook for 2012.
|
The 160th Meeting of the Conference of the Organization of the Petroleum
Exporting Countries (OPEC) convened in Vienna, Austria, on 14 December 2011,
under the Chairmanship of its President, HE Eng Rostam Ghasemi, Minister of
Petroleum of the Islamic Republic of Iran and Head of its Delegation, and
its Alternate President, HE Abdul-Kareem Luaibi Bahedh, Minister of Oil of
Iraq and Head of its Delegation.
The Conference congratulated HE Eng Rostam Ghasemi on his appointment as
Minister of Petroleum of the Islamic Republic of Iran and HE Eng Abdurahman
Benyezza on his appointment as Minister of Oil and Gas of Libya.
The Conference elected HE Abdul-Kareem Luaibi Bahedh, Minister of Oil of
Iraq and Head of its Delegation, as President of the Conference for one
year, with effect from 1 January 2012, and HE Dr Mohammad Al-Busairi,
Minister of Oil and State Minister of National Assembly Affairs of the State
of Kuwait, as Alternate President, for the same period.
The Conference reviewed the Secretary General's report, the report of the
Economic Commission Board, the report of the Ministerial Monitoring
Sub-Committee - which met under the Chairmanship of HE Dr Mohammad Al-Busairi,
Minister of Oil and State Minister of National Assembly Affairs of the State
of Kuwait - and various administrative matters. The Conference exchanged
views on, inter alia, recent developments in multilateral environment
matters and the outcome of the recent UN Climate Change Conference held in
Durban, South Africa, as well as the status of the Organization's ongoing
energy dialogue with the European Union. The Conference applauded efforts
being made by Member Countries' climate change negotiators to safeguard the
interests of developing countries, in general, and oil-producing nations, in
particular, and recorded its appreciation of the crucial work carried out by
the Secretariat in relation to this very important topic.
The Conference reviewed recent oil market developments, as presented by the
Secretary General, in particular supply/demand projections, as well as the
outlook for 2012. Ministers noted that the heightened price volatility
witnessed during the course of the year 2011 is predominantly a reflection
of increased levels of speculation in the commodities markets, exacerbated
by geopolitical tensions, rather than a result of supply/demand
fundamentals. The Conference further observed that downside risks facing
the global economy continue to include: the sovereign debt crisis in the
Euro-zone; persistently high unemployment in the advanced economies; and
inflation risk in the emerging economies. Planned austerity measures, not
only in the Eurozone but also in other OECD economies, are likely to
contribute to lower economic growth in the coming year.
The Conference noted, further, that, although world oil demand is forecast
to increase slightly during the year 2012, this rise is expected to be
partially offset by a projected increase in non-OPEC supply.
In light of the foregoing and given the demand uncertainties, the Conference
decided to maintain the current production level of 30.0 mb/d, including
production from Libya, now and in the future. The Conference also agreed
that Member Countries would, if necessary, take steps (including voluntary
downward adjustments of output) to ensure market balance and reasonable
price levels. In taking this decision, Member Countries confirmed their
preparedness to swiftly respond to developments that might have a
detrimental impact on orderly market developments. Given the ongoing
worrying economic downside risks, the Conference directed the Secretariat to
continue its close monitoring of developments in supply and demand, as well
as non-fundamental factors, such as macro-economic sentiment and speculative
activity, keeping Member Countries abreast at all times.
As always, the Conference emphasized OPEC's statutory commitment to oil
market stability through supplying petroleum to consumers at price levels
that are not detrimental to the world economy, as well as consumers, but
which, at the same time, do not create unsuitable investment conditions or
undermine the ability of the industry to adjust to market changes. Although
the global outlook provides little security to producers and investors,
future oil supply depends on ongoing and timely investments in capacity
expansion.
The Conference appointed Mr Issa Shahin Al Ghanim, Qatari Governor for OPEC,
as Chairman of the Board of Governors for the year 2012, and Dr Majid Al-Moneef,
Saudi Arabian Governor for OPEC, as Alternate Chairman for the same period,
with effect from 1 January 2012. |
