Consultative Meeting of the OPEC Conference

No 17/2006
Doha, Qatar
20 Oct 2006

A Consultative Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) convened in Doha, Qatar, on 19th and 20th October 2006, under the Chairmanship of the Alternate President of the Conference, HE Mohamed Bin Dhaen Al-Hamli, Minister of Energy of the United Arab Emirates and Head of its Delegation.

The Conference extended a warm welcome to HE Sheikh Ali Al-Jarrah Al-Sabah, Head of the Delegation of the State of Kuwait, who was attending a Meeting of the Conference for the first time since his appointment as Minister of Energy.

Having reflected on the oil market situation, in particular forecasts for the fourth quarter 2006 and the year 2007, the Conference observed that actions taken by OPEC in recent years have contributed to stability in the oil market, to the benefit of producers and consumers alike, and have demonstrated OPEC’s success in assuring adequate supplies to consumers. Heads of Delegation noted with concern, however, that crude oil supplies are well in excess of actual demand, as the above-average level of crude stocks in OECD countries demonstrates, and that the over-supply situation and imbalance in supply/demand fundamentals have destabilized the market.

In the light of the foregoing, and in order to ensure market stability, the Conference decided to reduce production by an amount of 1.2 mb/d, from current production of about 27.5 mb/d, to 26.3 mb/d, effective 1st November 2006. This interim arrangement will be reviewed at the Extraordinary Meeting of the Conference scheduled to convene in Abuja, Federal Republic of Nigeria, on 14th December 2006. In the interim, the Conference requested the Secretariat to continue closely monitoring the market.

Heads of Delegation re-emphasized the Organization’s unswerving and repeatedly-proven commitment to providing adequate supplies of petroleum to consuming nations. Member Countries reaffirmed their determination to continue investments in capacity expansion, as well as their commitment to stabilize the market.

The Conference expressed its sincere gratitude to the Government of the State of Qatar and the authorities of the City of Doha for their warm hospitality and the excellent arrangements made for the Meeting.

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Decrease of production levels by OPEC Member Countries
(with the exception of Iraq)
Effective 1st November 2006

 

 

 Decrease (b/d)

 Algeria

 59,000

 Indonesia  39,000
 I.R. Iran  176,000
 Kuwait  100,000
 S.P. Libyan A.J.  72,000
 Nigeria  100,000
 Qatar  35,000
 Saudi Arabia  380,000
 UAE  101,000
 Venezuela  138,000
 Total:  1,200,000