141st (Extraordinary) Meeting of the OPEC Conference

No 11/2006
Caracas, Venezuela
01 Jun 2006

The 141st (Extraordinary) Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) convened in Caracas, Bolivarian Republic of Venezuela, on 1st June 2006, under the Chairmanship of its President, HE Dr. Edmund M. Daukoru, Nigerian Minister of State for Petroleum Resources 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 deepest sympathy and condolences to the Government and people of Indonesia for the terrible loss they have suffered as a consequence of the disastrous earthquake that struck the country last week.

The Conference extended its congratulations to the Republic of Iraq on the recent inauguration of its Government; congratulated both HE Hussain Al-Shahristani, on his appointment as Minister of Oil of Iraq, and HE Dr. Shokri M. Ghanem, on his recent appointment as Chairman of the People’s Committee of the National Oil Corporation of S.P. Libyan A.J., and paid tribute to the contributions made to the Organization by their predecessors in office, HE Dr. Ibrahim Bahr Alolom and HE Hashim A. Ali Al Hashimi of Iraq and HE Dr. Fathi Hamed Ben Shatwan of S.P. Libyan A.J.

The Conference welcomed the Minister of Petroleum of Angola and the Minister of Petroleum & Mineral Resources of the Syrian Arab Republic, and a high-ranking representative from the Ministry of Petroleum of Egypt, whose presence at the Meeting is seen as reaffirmation of these oil-producing nations’ continued support for the Organization’s efforts to stabilize the oil market.

The Conference considered the report of the Ministerial Monitoring Sub-Committee, and again thanked the Members for their untiring efforts on OPEC’s behalf, as well as presentations on various subjects.

Having reviewed the oil market situation and its immediate prospects, the Conference observed that fundamentals have stayed unchanged since its last review, with the market continuing to be over supplied and commercial crude and product stocks remaining at comfortable levels in terms of days of forward cover. The Conference also noted that, similarly, world crude oil prices continued to remain high and volatile as a consequence of abiding concern over the lack of effective global oil refining capacity, in the short and medium term, coupled with anxiety about the ability of oil producers to meet anticipated, future oil demand. This price volatility is being exacerbated by geopolitical developments and speculation in the oil futures markets.

In the light of the foregoing, the Conference decided to retain the status quo. In so doing, however, the Conference reaffirmed its determination to ensure that crude oil prices remain at acceptable levels, reiterating also its readiness to act swiftly to take whatever steps might be necessary to safeguard the interest of Member Countries, in the short and longer term. For this purpose, the Conference agreed to continue closely monitoring market developments. The Conference further agreed that its President would consider convening an Extraordinary Meeting of the Conference prior to its September Meeting, should market condition so warrant.

The Conference reconfirmed that its next Ordinary Meeting is to take place in Vienna, Austria, on 11th September 2006, immediately preceding the OPEC International Seminar on 12th and 13th September 2006.

The Conference expressed its sincerest appreciation to His Excellency Hugo Chavez Frías, President of the Bolivarian Republic of Venezuela, the Government and people of the Bolivarian Republic of Venezuela, as well as the authorities of the City of Caracas for having hosted the Meeting and for the warm hospitality extended to the Conference and all Delegates. In addition, the Conference recorded its special thanks to HE Rafael Ramirez, Minister of Energy & Petroleum, and his able Staff for the excellent arrangements made for the Meeting.