OPEC : OPEC 157th Meeting concludes

OPEC 157th Meeting concludes

No 8/2010
Vienna, Austria
14 Oct 2010

The 157th Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) convened in Vienna, Austria, on 14 October 2010, under the Chairmanship of its President, HE Wilson Pástor-Morris, Minister of Non-Renewable Natural Resources of Ecuador and Head of its Delegation, and its Alternate President, HE Masoud Mir-Kazemi, Minister of Petroleum of the Islamic Republic of Iran and Head of its Delegation.

The Conference congratulated HE Dr Youcef Yousfi, HE Wilson Pástor-Morris and HE Mrs Diezani Alison-Madueke on their appointments as: Minister of Energy and Mines of Algeria and Head of its Delegation; Minister of Non-Renewable Natural Resources of Ecuador and Head of its Delegation; and Minister of Petroleum Resources of Nigeria and Head of its Delegation, respectively, and paid tribute to the services rendered to the Organization by their predecessors in office, HE Dr Chakib Khelil of Algeria, HE Germánico Pinto of Ecuador and HE Dr Rilwanu Lukman of Nigeria. 

 The Conference recorded its firm support for the democratically-elected President and Government of Ecuador and voiced its sincere hope that order and peace will prevail in this Member Country.

 The Conference considered: the Secretary General's report on a variety of issues; the report of the Economic Commission Board; the report of the Ministerial Monitoring Sub-Committee (MMSC), chaired by HE Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah, Head of the Delegation of Kuwait, thanking its Members for their continued efforts on the Organization's behalf; as well as various administrative matters.  The Conference also exchanged views on, inter alia, the outcome of the 12th International Energy Forum and the 7th Ministerial Meeting of the EU-OPEC Energy Dialogue, recent developments on multilateral environment matters and preparations for the 16th Session of the Conference of the Parties of the UNFCCC (COP-16/CMP-6) that will take place later this year.  The Conference recorded its appreciation and endorsement of the crucial work carried out by the Secretariat in relation to the very important topic of climate change negotiations and requested the Secretariat continue this valuable work.

 The Conference reviewed current oil market conditions and future prospects and observed that, whilst economic recovery is underway, there is still considerable concern about the magnitude and pace of this recovery, especially in the major industrialized countries of the OECD.  Moreover, whilst there has been some easing of the overhang in crude oil stocks, market fundamentals remain weak, refinery utilization rates are low and product inventories have risen considerably.

 Accordingly, based on its detailed analysis of important market drivers, which clearly reveals that the market remains well supplied, and given the persisting significant downside risks to world economic recovery, the Conference decided to leave current production levels unchanged.  In taking this decision, the Conference reaffirmed its determination to ensure reliable supply to the market, at reasonable and fair prices, supported by an adequate level of spare capacity for the benefit of the world at large.  Indeed, the Organization remains cognisant of the consuming countries' concerns over security of supply and its Members are committed to optimizing the pace of their capacity expansion so that they are able to respond to expected growing global demand and increased calls on OPEC crude in the future.  At the same time, Member Countries remain firm in their intention to swiftly respond to any developments which might jeopardize oil market stability and their interests.  Therefore, in addition to continual monitoring of supply/demand fundamentals, the Conference agreed to reassess the market situation at its 158th (Extraordinary) Meeting, to be held in Quito, Ecuador, on 11 December 2010. 

 The Conference elected HE Masoud Mir-Kazemi, Minister of Petroleum of the Islamic Republic of Iran and Head of its Delegation, as President of the Conference for one year, with effect from 1 January 2011, and HE Dr Hussain Al-Shahristani, Minister of Oil of Iraq, as Alternate President, for the same period.

 The Conference decided to reconstitute the Ministerial Monitoring Sub-Committee under the Chairmanship of HE Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah, Minister of Oil and Minister of Information of the State of Kuwait, and with HE Dr. Youcef Yousfi, Minister of Energy and Mines of Algeria; HE Mrs Diezani Alison-Madueke, Minister of Petroleum Resources of Nigeria; and the Secretary General as Members.  In so doing, the Conference recorded its deep appreciation of the valued contribution made by the Islamic Republic of Iran during its many years as a Member of the MMSC.

 The Conference appointed Engineer Goni Musa Sheikh, Governor for Nigeria, as Chairman of the Board of Governors for the year 2011, and Mr. Issa Shahin Al Ghanim, Governor for Qatar, as Alternate Chairman for the same period, with effect from 1 January 2011.

 The Conference reviewed the report from the Deputy Ministers on Long-Term Strategy and decided to adopt the revised Long-Term Strategy for the Organization.  The Conference recorded the Organization's particular thanks to HRH Prince Abdulaziz Bin Salman Bin Abdulaziz Al-Saud, Chairman of the Meetings of the Deputy Ministers of Petroleum/Energy on the Review of the Long-Term Strategy; Dr Bernard Mommer, Alternate-Chairman; HE Abdalla S. El-Badri, the Secretary General; all Heads and Members of Delegations to these Meetings; as well as the Staff of the Secretariat involved, for the excellent work performed in drawing up this revised, comprehensive Long-Term Strategy for the Organization.

The Conference decided that its next Ordinary Meeting will convene in Vienna, Austria, in the first week of June 2011.

 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.  In addition, the Conference recorded its particular thanks to the Mayor and authorities of the City of Vienna for their collaboration in the organization of events by the OPEC Secretariat to mark the 50th anniversary of the foundation of the Organization.