120th (Extraordinary) Meeting of the OPEC Conference

No 7/2002
Vienna, Austria
26 Jun 2002

The 120th (Extraordinary) Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) convened in Vienna, Austria, on 26 June 2002, under the Chairmanship of its President, HE Dr. Rilwanu Lukman, Presidential Adviser on Petroleum & Energy of Nigeria and Head of its Delegation.

The Conference extended its deepest condolences to the Government and people of the Islamic Republic of Iran for the terrible loss they have suffered as a consequence of the disastrous earthquake that struck the country last week.

The Conference considered the report of the Ministerial Monitoring Sub-Committee, and thanked the Sub-Committee Members for their continuous endeavours on behalf of the Organization.

Having reviewed the oil market situation as well as supply/demand prospects for the second half of the year, the Conference noted that OPEC reduction measures during 2001 and 2002, supported by similar measures from some non-OPEC producers over the first half of the year, had restored relative market balance, but observed that the relative strength in current market prices is partially a reflection of the prevailing political situation rather than solely the consequence of market fundamentals.

In light of the foregoing, and the doubts regarding the strength of the world economic recovery, coupled with uncertainty as to the modest demand growth for the year and the current comfortable stock levels, the Conference decided to maintain the current agreed production levels until the end of September 2002. Market conditions will, however, continue to be carefully monitored and the Conference reiterated its commitment to take any further measures, when deemed necessary, to maintain market stability.

The Conference repeated its call on other oil producers/exporters to continue to co-operate with OPEC in its endeavours to minimize price volatility and maintain market stability in the interests of producers and consumers.

The Conference expressed its satisfaction at the outcome of the Senior Experts’ Working Group of OPEC and invited non-OPEC producers, held on 20 June 2002, the second in an ongoing series of experts’ meetings aimed at enhancing effective co-operation between OPEC and non-OPEC producing/exporting countries.

The Conference decided to appoint HE Alvaro Silva Calderon of Venezuela as Secretary General of the Organization with effect from 1 July 2002 until 31 December 2003. The Conference expressed its deepest appreciation of the services rendered to the Organization by the outgoing Secretary General, HE Dr. Alí Rodríguez Araque, and wished him well in his new position of President of Petróleos de Venezuela SA.

The Conference confirmed the date of 18 September 2002 for its 121st (Ordinary) Meeting.

The Conference expressed its appreciation to the Government of the Federal Republic of Austria and the authorities of the City of Vienna for their warm hospitality and the excellent arrangements made for the Meeting.