OPEC to Increase Production

OPEC to Increase Production by 500,000 b/d

09-13-2007

The 145th Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) convened in Vienna, Austria, on 11 September 2007, under the Chairmanship of its President, HE Mohamed Bin Dhaen Al Hamli, Minister of Energy of the United Arab Emirates and Head of its Delegation, and its Alternate President, HE Dr. Chakib Khelil, Minister of Energy and Mines of Algeria and Head of its Delegation.

The Conference congratulated HE Odein Ajumogobia (SAN) on his appointment as Minister of State for Energy (Petroleum) of Nigeria and Head of its Delegation, and paid tribute to the outstanding contribution made to the Organization by his predecessor in office, HE Dr. Edmund M. Daukoru. The Conference also warmly welcomed HE Gholamhossein Nozari, Acting Minister of Petroleum of the Islamic Republic of Iran and Head of its Delegation, and HE Eng. Mohammed Abdullah Al-Aleem, Acting Minister of Oil of the State of Kuwait and Head of its Delegation, and recorded its appreciation of the efforts made on behalf of the Organization by their predecessors in office, HE Sayed Kazem Vaziri Hamaneh of IR Iran, and HE Sheikh Ali Al Jarrah Al-Sabah of Kuwait, particularly thanking HE Hamaneh for his Chairmanship of the Ministerial Monitoring Sub-Committee (MMSC) in recent years.

The Conference warmly welcomed the Minister of Petroleum of Egypt, as well as high-level representatives from Mexico, the Sultanate of Oman and the Russian Federation, and reiterated the importance it continues to attach to dialogue and consultations with fellow oil-producing nations in achieving order and stability in the oil market.

The Conference considered: the Secretary General's report; the report of the Economic Commission Board; the report of the MMSC, chaired by HE Gholamhossein Nozari, Head of the Delegation of the Islamic Republic of Iran, whose Members the Conference again thanked for their continued efforts on the Organization’s behalf; and various administrative matters. The Conference also exchanged views on recent developments in environment-related multilateral discussions, the outcome and implications of the 15th Session of United Nations Commission on Sustainable Development and the outcome of the 4th Ministerial Meeting of the EU-OPEC Energy Dialogue, Member Countries recording their firm commitment to working together with the international community towards achieving energy market stability and security, enhancing socio-economic development, alleviating poverty and protecting the environment.

The Conference reviewed the current oil market conditions and prospects and, once again, observed that action taken by OPEC Member Countries to increase production over the preceding several years has led to a comfortable build-up in inventory levels, especially of crude. It was, on the other hand, noted that ongoing tightness in the US products market continues to affect the level of product stocks and prices.

The Conference further observed the recent shift of the forward market into backwardation and its implications on stocks. It also noted that the high-demand winter season necessitates keeping the market adequately supplied. To this end, the Conference decided to increase the volume of crude supplied to the market by OPEC Member Countries (excluding Angola and Iraq) by 500,000 b/d, effective 1 November 2007.

Further, and recognizing the importance of maintaining oil market stability for the benefit of the world economy, the Conference reaffirmed its longstanding commitment to ensuring sound supply fundamentals at all times and to offering an adequate level of spare capacity for the benefit of the world at large, with reasonable prices to both producers and consumers that are consistent with the need for healthy global economic growth and conducive to the timely expansion of upstream and downstream capacity. Furthermore, the Conference recorded the readiness of Member Countries to swiftly respond to any developments which might jeopardize oil market stability and their interests. For this purpose, in addition to the Organization vigilantly monitoring supply/demand fundamentals, the Conference agreed to reassess the market situation at its 146th (Extraordinary) Meeting, to be held in Abu Dhabi, UAE, on 5 December 2007.

The Conference elected HE Dr. Chakib Khelil, Minister of Energy and Mines of Algeria and Head of its Delegation, as President of the Conference for one year, with effect from 1 January 2008, and HE Desidério da Graça Verissímo e Costa, Minister of Petroleum of Angola and Head of its Delegation, as Alternate President, for the same period.

The Conference appointed Dr. Falah J. Alamri, Governor for Iraq, as Chairman of the Board of Governors for the year 2008, and, Ms. Siham A. Razzouqi, Governor for Kuwait, as Alternate Chairman for the same period, with effect from 1 January 2008.

The Conference decided that its next Ordinary Meeting will convene in Vienna, Austria, on Wednesday, 5 March 2008.