Resolution of the 138th
(Extraordinary) Meeting of the OPEC Conference
OPEC News
VIENNA
Petroleumworld.com 02 01 06
No 3/2006
Vienna, Austria - 31 January 2006
The
139th (Extraordinary) Meeting of the Conference of the Organization
of the Petroleum Exporting Countries (OPEC) convened in Vienna,
Austria, on 31 January 2006, under the Chairmanship of its President,
HE Dr. Edmund Daukoru, Minister of State for Petroleum Resources
of Nigeria and Head of its Delegation, and its Alternate President,
HE Mohamed Bin Dhaen Al Hamli, Minister of Energy of the United
Arab Emirates and Head of its Delegation.
The
Conference extended its condolences to the Government and people
of the State of Kuwait on the sad demise of His Highness Sheikh
Jaber Al-Ahmad Al-Jaber Al-Sabah, Emir of Kuwait.
The
Conference also extended its condolences to the Government and
people of the United Arab Emirates on the passing away of His
Highness Sheikh Maktoum bin Rashid, Vice President and Prime Minister
of the United Arab Emirates, and Ruler of Dubai.
The
Conference considered the report of the 57th Meeting of the Ministerial
Monitoring Sub-Committee (MMSC), held on 30 January 2006, and
again voiced its thanks to the Members of the Sub-Committee for
their constant efforts on the Organization’s behalf.
The
Conference further reviewed the oil market outlook, including
the overall demand/supply expectations for the year 2006, in particular
the first and second quarters, and observed that market fundamentals
have remained in balance since its last Meeting, in Kuwait in
December 2005, with comfortable stock levels. It also observed
that the world economic performance continues to be resilient.
The
Conference also noted that, although the market is well supplied
with crude oil, and commercial oil stock levels in the OECD remain
healthy, prices have continued to rise. This, however, is primarily
a result of refining bottlenecks and other non-fundamental factors.
Furthermore, the Conference observed that forecasts for supply
and demand in recent years have tended to underestimate the requirements
for OPEC oil, especially in the second quarter.
Recalling
that OPEC is committed to continuing to play its role in maintaining
a supply level conducive to economic growth, the Conference expressed
its concern about the high degree of price volatility, and the
impact this may have on the global economy, in particular for
developing countries.
Consequently,
the Conference decided to maintain the current OPEC-10 production
level of 28.0 mb/d, as agreed during the 136th Meeting of the
Conference in June 2005. At the same time, however, it called
upon the Secretariat to continue exercising vigilance in monitoring
the market, in view of the potential risks and uncertainties identified.
The
Conference reconfirmed that its next Ordinary Meeting will be
held on 8 March 2006, in Vienna, Austria.
The
Conference expressed its appreciation to the Government of the
Republic of Austria and the authorities of the City of Vienna
for their warm hospitality and the excellent arrangements made
for the Meeting.
OPEC
NEWS 01/31/06
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