142nd Meeting of the OPEC Conference

No 15/2006
Vienna, Austria
11 Sep 2006

The 142nd Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) convened in Vienna, Austria, on 11 September 2006, under the Chairmanship of its President, HE Dr. Edmund Maduabebe 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 congratulated HE Sheikh Ali Al-Jarrah Al-Sabah on his appointment as Minister of Energy of the State of Kuwait, and paid tribute to the outstanding contribution made to the Organization by his predecessor in office, HE Sheikh Ahmad Fahad Al-Ahmad Al-Sabah.

The Conference warmly welcomed the Minister of Petroleum of Angola, the Minister of Petroleum of Egypt, the Minister of Petroleum and Mineral Resources of Syria, the Vice Minister of Industry and Energy of the Russian Federation, and the Under-Secretary for Hydrocarbons of Mexico, and reiterated the value it places on continued dialogue and consultations with fellow oil-producing nations in achieving stability in the oil market.

The Conference considered: the Secretary General's report; the report of the Economic Commission Board; the report of the Ministerial Monitoring Sub-Committee (MMSC), chaired by HE Sayed Kazem Vaziri Hamaneh, Minister of Petroleum of the Islamic Republic of Iran and Head of the Delegation, whose Members the Conference again thanked for their continued efforts on the Organization’s behalf; and various administrative matters.

Having reviewed the current oil market, the Conference noted that action taken by OPEC Member Countries to increase production over the preceding several years has led to a continued build-up in inventory levels, especially of crude, which now stand comfortably above their five-year average, more than adequate to ease concerns in the market about potential supply disruptions or worries arising from geopolitical tensions.

The Conference noted that, growth in crude oil supply in recent years has continued to exceed growth in demand - the rebound in non-OPEC supply in 2007 is predicted to be at its highest level since 1984 – and that market fundamentals indicate a clear imbalance between supply and demand. Prices having moderated substantially in recent weeks, the Conference reiterated that the Organization will continue its proactive policy of supporting market stability by restoring a balance between supply and demand, at prices reasonable to both producers and consumers and conducive to continued world economic growth, especially in the developing countries, to which end Member Countries are continuing their high-cost production capacity expansion programmes.

Recognizing the importance of maintaining oil market stability for the benefit of the world economy, the Conference agreed that Member Countries would take the necessary steps to ensure that supply and demand remained in balance, with prices at reasonable levels, supplying to the market the needed volumes. Moreover, the Conference stressed its determination to ensure that crude oil prices remain at acceptable levels and Member Countries recorded their preparedness to respond rapidly to any developments which might jeopardize their interests. For this purpose, in addition to continuing to vigilantly monitor supply/demand fundamentals, the Conference decided to review market developments at its 143rd (Extraordinary) Meeting, to be held in Nigeria on 14 December 2006, and to take decisions as considered necesssary. Moreover, in light of the many downside risks identified, the Conference also agreed that its President would make the necessary consultations prior to the December Meeting, should market conditions so warrant.

Given the important role played by all oil-producing nations, the Conference reiterated its call on non-OPEC oil producers to continue co-operating actively with OPEC in its ongoing efforts to achieve price and market stability, with reasonable prices consistent with robust economic growth, as well as steady revenue streams, for producing countries and the industry, conducive to the expansion of upstream and downstream capacity to meet international demand for oil and products in the future.

The Conference elected His Excellency Mohamed Bin Dhaen Al Hamli, Minister of Energy of the United Arab Emirates and Head of its Delegation, as President of the Conference for one year, with effect from 1 January 2007, and HE Dr. Chakib Khelil, Minister of Energy and Mines of Algeria and Head of its Delegation, as Alternate President, for the same period.

The Conference appointed Mr. Hossein Kazempour Ardebili, Governor for the Islamic Republic of Iran, as Chairman of the Board of Governors for the year 2007, and Dr. Falah Alamri, Governor for Iraq, as Alternate Chairman for the same period, with effect from 1 January 2007.

The Conference decided that its next Ordinary Meeting will convene in Vienna, Austria, on 15 March 2007.

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.

Finally, the Conference passed Resolutions that will be published on 11 October 2006, after ratification by Member Countries.