127th Meeting of the OPEC Conference

No 14/2003
Vienna, Austria
24 Sep 2003

The 127th Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) convened in Vienna, Austria, on September 24, 2003, under the Chairmanship of its President, HE Abdullah bin Hamad Al Attiyah, Second Deputy Prime Minister, Minister of Energy & Industry of Qatar and Head of its Delegation, and its Alternate President, HE Dr Purnomo Yusgiantoro, Minister of Energy & Mines of Indonesia and Head of its Delegation.

The Conference congratulated the President of the Conference on his recent appointment as his Country’s Second Deputy Prime Minister, and welcomed the newly appointed Minister of Oil of the Republic of Iraq, HE Dr Ibrahim Bahr Alolom, as the Head of its Delegation, as well as the newly appointed Minister of Energy of the State of Kuwait, HE Sheikh Ahmad Fahad Al-Ahmad Al-Sabah, as the Head of its Delegation.

After warmly welcoming the Minister of Petroleum & Mineral Resources of the Syrian Arab Republic and high-level representatives from Angola, Egypt, Mexico, the Sultanate of Oman, and the Russian Federation, the Conference again highlighted the importance of strengthening effective co-operation with all non-OPEC producing countries in the interests of achieving stability in the oil market and prices.

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 Bijan Namdar Zangeneh, Minister of Petroleum of the Islamic Republic of Iran, and various administrative matters.

Having reviewed the current oil market, the Conference noted that, whilst the global economy appears to be improving, only normal, seasonal growth in demand is expected for the fourth quarter, and the market continues to be well-supplied. In view of the continued rise in non-OPEC supplies and the ongoing recovery in Iraqi production, stocks have been replenished and are rapidly reaching normal seasonal levels, with the supply/demand balance for the fourth quarter 2003 and first quarter 2004 indicating a contra-seasonal stock build-up. This could have a destabilizing effect on the market which requires a reduction of supplies from all producers to ensure stability.

The Conference noted its decisions in January and April 2003 to adjust the production ceiling prior to the supply disruption from Iraq. Noting, also, the gradual return of this Founding Member to the market, and in order to ensure balance to the market, the Conference decided to return to the ceiling of 24.5 mb/d and the agreed production levels, with effect from November 1, 2003. In this regard, all Member Countries reiterated their commitment to the agreed production levels and underlined the special importance of full compliance and strict discipline in implementing such agreements.

Having taken this decision in recognition of the importance of maintaining oil market stability for the benefit of the world economy, as well as for consumers and producers, the Conference expressed its expectation that non-OPEC oil producers will take concrete measures to restrain their production increases, thereby actively sharing, with the Organization, the burden of maintaining price and market stability in 2004 and thereafter.

Moreover, taking into consideration the market outlook for 2004, with its concomitant uncertainties, the Conference further decided to convene an Extraordinary Meeting in Vienna on December 4, 2003, to review market developments and take whatever measures it deems appropriate at that time.

The Conference elected HE Dr Purnomo Yusgiantoro, Minister of Energy & Mines of Indonesia and Head of its Delegation, as President of the Conference, and HE Sheikh Ahmad Fahad Al-Ahmad Al-Sabah, Minister of Energy of the State of Kuwait and Head of its Delegation, as Alternate President, for one year with effect from January 1, 2004.

The Conference appointed Mr Elie Habalian Dumat, Governor for Venezuela, as Chairman of the Board of Governors for the year 2004, and Mr Mohamed Meziane, Governor for Algeria, as Alternate Chairman for the same period, with effect from January 1, 2004.

The Conference decided that its next Ordinary Meeting will convene in Vienna, Austria, on March 10, 2004.

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.

The Conference passed Resolutions that will be published on October 24, 2003, after ratification by Member Countries.