Main points of OPEC ministerial meeting communique



AFP
VIENNA
Petroleumworld.com 03 09 06

OPEC on Wednesday decided to maintain its official crude production ceiling at 28.0 million barrels per day in a bid to cool high oil prices, which are being supported by tensions in key producers Iran and Nigeria.

Following are the main points of the communique released after the meeting of ministers from the Organization of the Petroleum Exporting Countries.

1. The Market

Having reviewed the oil market outlook, the Conference observed that world economic performance remains strong.

The Conference also noted that, although all indicators show that the market is fundamentally well-supplied with crude oil and that commercial oil stocks in the OECD are at high levels, world crude oil prices remain volatile, these being driven by geopolitical factors and associated concerns regarding potential future supply disruptions, as well as downstream bottlenecks, exacerbated by more stringent US fuel quality standards.

These factors reflected in the increased activity observed in the futures market and the pattern of disconnect between prices and commercial stock levels, that has become apparent since 2004.

2. The Decision

Despite the present supply (and) demand outlook and in view of the prevailing geopolitical concerns, the Conference decided to maintain the current OPEC production ceiling of 28.0 million barrels per day for the time being, in order to contribute further to market stability and robust global economic growth, as well as maintain prices at levels reasonable to both producers and consumers.

3. Looking Ahead

In view of the importance of continued vigilance, given the possible risks and uncertainties, including expected stock-build, the Conference further agreed to continue to closely monitor market developments and to take appropriate and swift action, as and when the need arises.

The Conference will convene an Extraordinary Meeting in Venezuela on June 1.
The Conference decided that its next Ordinary Meeting will be convened in Vienna on September 11.

AFP 03 07 06

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