OPEC 165th Meeting concludes
The 165th Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) convened in Vienna, Austria, on 11 June 2014 under the Chairmanship of its President, HE Omar Ali ElShakmak, Acting Minister of Oil & Gas of Libya and Head of its Delegation.
The Conference congratulated HE Dr. Ali Saleh Al-Omair and HE Omar Ali ElShakmak on their appointments as Minister of Oil of Kuwait and Acting Minister of Oil & Gas of Libya, respectively, and paid tribute to the services rendered to the Organization by their predecessors in office, HE Mustafa Jassim Mohammad Al-Shamali and HE Dr. Abdel Bari Ali Al-Arousi.
The Conference considered the Secretary General’s report, the report of the 121st Meeting of the Economic Commission Board (ECB) and a variety of administrative matters. In so doing, the Conference listened to presentations and exchanged views on the status of multilateral negotiations on climate change; the Organization’s ongoing energy dialogue with the European Union (EU); the continuing cooperation between OPEC, the International Energy Forum (IEF) and the International Energy Agency (IEA); as well as the continued collaborative work with the G-20 and other international organizations.
The Conference reviewed recent oil market developments and world economic growth, as presented by the Secretary General, in particular supply/demand projections for the second half of the year, as well as the outlook for 2015, noting that the relative steadiness of prices during 2014 to date is an indication that the market is adequately supplied, with the periodic price fluctuations being more a reflection of geopolitical tensions than a response to fundamentals. The Conference observed, however, that, whilst world economic growth was projected to reach 3.4% in 2014, up from 2.9% in 2013, downside risks to the global economy, both in the OECD and non-OECD regions, remain unchecked.
The Conference noted, moreover, that whilst world oil demand is expected to rise from 90.0 mb/d in 2013 to 91.1 mb/d in 2014, non-OPEC supply is projected to grow by 1.4 mb/d, with OECD stock levels, in terms of days of forward demand cover, remaining comfortable.
In light of the foregoing, the Conference again decided that Member Countries should adhere to the existing production level of 30.0 mb/d. In taking this decision, the Conference unanimously agreed that Member Countries would, if required, take steps to ensure market balance which is so important to world economic activity. Member Countries, in turn, reiterated their willingness to firmly respond to developments that might jeopardize oil market stability.
The Conference decided to extend the tenure of HE Abdalla S. El-Badri as Secretary General for a period of six months from 1 January 2015.
The Conference decided that its next Ordinary Meeting will convene in Vienna, Austria, on Thursday, 27 November 2014.
Finally, the Conference reiterated its expression of 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.