147th (Extraordinary) Meeting of the OPEC Conference

No 2/2008
Vienna, Austria
01 Feb 2008

The 147th (Extraordinary) Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) was held at the OPEC Headquarters in Vienna on 1 February 2008, under the Chairmanship of its President, HE Dr Chakib Khelil, Minister of Energy and Mines of Algeria and Head of its Delegation, in order to review recent developments in world oil markets.

Prior to commencing the business of the day, the Conference extended a very warm welcome to HE Dr Galo Chiriboga Zambrano, Minister of Mines and Petroleum of Ecuador, who was attending a Meeting of the Conference as Head of his Country’s Delegation for the first time.

The Conference extended its condolences to the Government and people of the Republic of Indonesia on the demise of His Excellency Muhammad Soeharto, former President of the Republic.

The Conference then reviewed oil market developments since its Meeting in Abu Dhabi in December 2007, as well as short-term prospects. It observed that OPEC production decisions had ensured that the market remained well supplied throughout 2007. It also noted that the first half of 2008 was likely to witness a crude inventory build, and supply/demand forecasts indicate that commercial oil stocks are in line with the seasonal trend and are expected to remain within their five-year average during the traditionally lower-demand season in 2008.

In view of the current situation, coupled with the projected economic slow-down, the Conference agreed that current OPEC production is sufficient to meet expected demand for the first quarter of the year. At the same time, however, the Conference noted that the significant uncertainties associated with the projected downturn in the global economy called for vigilant attention to their impact on key market fundamentals until its next Meeting on 5 March 2008. The Conference reiterated the Organization’s determination to take every measure deemed necessary to keep the market stable.

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.