2005 - OPEC

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Dr Edmund M Daukoru, Presidential Adviser on Petroleum & Energy, Nigeria, with Bijan Namdar Zangeneh, Minister of Petroleum, IR Iran, and Sheikh Ahmad Fahad Al-Ahmad Al-Sabah, Minister of Energy of Kuwait and President of the OPEC Conference at the 134th (Extraordinary) Meeting of the OPEC Conference. demand, allowing commercial oil stocks to build to above their five-year average. Consequently, the ORB had moderated over the fourth quarter 2004, averaging $36/b in December 2004, with many of OPEC’s heavy crudes standing lower. The Conference further noted that, whilst prices have since strengthened, as a result of seasonal market characteristics, including cold winter weather, prices have been in contango for some time, especially in the case of heavy crudes. This situation is, moreover, accompanied by a certain degree of market volatility, reflecting concern over possible supply disruptions and the expectation of continued strong demand. Since current supply/demand forecasts indicate that the market will remain in balance through the first quarter 2005, the Conference decided to maintain currently agreed production levels. In this connection, the Conference reiterated its call on MCs to ensure strict compliance with agreed production levels. Aware of the expected seasonal drop in demand in the second quarter, and given the stock-build, which might be 4
accentuated in light of the current market situation, the Conference further decided to continue monitoring market developments and that its President should make consultations ahead of the next Ordinary Meeting of the Conference, scheduled to convene in Isfahan, the Islamic Republic of Iran, on 16 March 2005, to ensure that a timely cut could be made, as appropriate. After reviewing the evolution of the OPEC Reference Price since its inception in 2000, the Conference noted that prices have remained outside the Band for over a year due to market changes that have rendered the Band unrealistic and has, therefore, decided to temporarily suspend the current Price Band, pending completion of further studies on the subject. Notwith- standing this temporary suspension, the Conference stressed that the Organization remains firm in its commitment to maintaining a stable market with prices at reasonable levels conducive to expansion of production capacity and supply growth to meet rising demand, as well as to ensuring that there is enough oil to fuel global economic growth in the 21st century, in particular in the developing countries. 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. Statement by OPEC Conference President on recent price development Vienna, Austria, 6 March 2005 Along with other members of the global community OPEC has been closely observing oil price movements recently, seeing that the ORB has risen by more than $8.50/b since 8 February, reaching a $48.36/b on Friday, 4 March. OPEC is concerned about this price development despite the fact that the market is well-supplied and global crude oil stocks have continued to build, now standing above their five-year average. This recent price rise is due to a number of factors, such as the late cold snap in the north- ern hemisphere and unexpected outages in the downstream sector, in addition to expecta- tions of continued strong demand and ongoing concerns about the slowdown in the pace of growth in non-OPEC supply, as well as downstream bottlenecks. Increased investment in commodities by speculators has caused further sizeable upward pressure on prices. OPEC is committed to maintaining stability and ensuring that global markets remain well supplied at all times. Towards this end, OPEC had increased production levels three times during 2004. Currently, the Organization is producing around 29.5 mb/d, which has ensured that demand 4
Page 4 and 5: Organization of the Petroleum Expor
Page 6 and 7: Foreword There are many words that
Page 8 and 9: As an industry we have to be inclus
Page 10 and 11: OPEC in the World Economy In 2005,
Page 12 and 13: significantly supported by savings
Page 14 and 15: The largest country in the region,
Page 16 and 17: $510.5 billion in revenues, compare
Page 18 and 19: Oil Market Developments OPEC produc
Page 20 and 21: Figure 1: Year-on-year percentage c
Page 22 and 23: Figure 3: OPEC 1 and non-OPEC 2 mar
Page 24 and 25: OECD OECD countries, which account
Page 26 and 27: Table 6 Summarised supply/demand ba
Page 28 and 29: Figure 4: Monthly movement of crude
Page 30 and 31: demand growth forecast for 2005 and
Page 32 and 33: closing at $57.82/b. The downward p
Page 34 and 35: Looking ahead, initiatives from OPE
Page 36 and 37: The freight rates of VLCCs on the M
Page 38 and 39: EU-OPEC Energy Dialogue In line wit
Page 40 and 41: million barrels a day for a period
Page 42 and 43: Russia-OPEC Energy Dialogue Russia,
Page 44 and 45: China-OPEC Energy Dialogue The birt
Page 46 and 47: OPEC Acting Secretary General expre
Page 50 and 51: is fully met, and global crude oil
Page 52 and 53: particular the fourth quarter 2005,
Page 54 and 55: in the Middle East and North Africa
Page 56 and 57: increased activity in the oil futur
Page 58 and 59: & Energy and Head of its Delegation
Page 60 and 61: forward to hosting the next EU-OPEC
Page 62 and 63: OPEC President sends US Energy Secr
Page 64 and 65: what additional measures could be t
Page 66 and 67: implementing costly investment plan
Page 68 and 69: tion remaining committed to so enha
Page 70 and 71: panding the role of oil in meeting
Page 72 and 73: Brussels on 9 June, including the f
Page 74 and 75: The Conference considered the repor
Page 76 and 77: Al-Ahmed Al-Jaber Al-Sabah, Prime M
Page 78 and 79: Activities of the Secretariat Offic
Page 80 and 81: stocks at comfortable levels, and h
Page 82 and 83: oil in meeting future global energy
Page 84 and 85: In addition to the close monitoring
Page 86 and 87: through regular dissemination of el
Page 88 and 89: support from the RD, also updated a
Page 90 and 91: 2005 were stored in the OPEC archiv
Page 92 and 93: ALGERIA Dr Chakib Khelil Minister o
Page 94 and 95: Members of the Board of Governors M
Page 96 and 97: National Representatives to the ECB
Page 98 and 99:
Diary of the President/Secretary Ge
Page 100 and 101:
100 Calendar January 14 OPEC-United
Page 102 and 103:
June 14 Meeting of the OPEC Legal D
Page 104 and 105:
November 28- COP-11-Meeting of the
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2005 - OPEC

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