2005 - OPEC

is fully met, and global crude oil stocks continue to build. Moreover, some of our MCs sped
up the implementation of their capacity expansion plans, so as to enhance the Organization’s
ability to cope with possible future supply disruptions. OPEC’s spare capacity now stands at
more than 2 mb/d, and should exceed 3 mb/d by year-end with further capacity expansions
expected in the coming years.
Currently, we are monitoring closely the market and on 16 March, when our Ministerial
Conference next meets in Isfahan, IR Iran, we shall review the prevailing market outlook to
ensure market stability at reasonable price.
135th Meeting of the OPEC Conference
Isfahan, IR Iran, 16 March 2005
The 135th Meeting of the OPEC Conference convened in Isfahan, IR Iran, on 16 March 2005,
under the Chairmanship of its President, Sheikh Ahmad Fahad Al-Ahmad Al-Sabah, Minister
of Energy of the State of Kuwait and Head of its Delegation, and its Alternate President, Dr
Edmund M Daukoru, Nigerian Presidential Adviser on Petroleum & Energy and Head of its
Delegation.
The Conference welcomed the Minister of Petroleum of Angola, the Minister of Oil & Gas of
the Sultanate of Oman, the Minister of Petroleum & Mineral Resources of the Syrian Arab
Republic and high-level representatives from Egypt and Mexico, whose presence at the Meet-
ing is seen as renewed confirmation of these countries’ solidarity with the objective of the
Organization to stabilise the oil market. The Conference reviewed the Secretary General’s
report, the report of the Economic Commission Board (ECB), the report of the MMSC – whose
Members the Conference again thanked for their untiring efforts on OPEC’s behalf – and
various administrative matters.
Having reviewed the oil market situation and its immediate prospects, the Conference observed
that, with the market having remained well supplied, OECD commercial oil stocks at the end
of the fourth quarter 2004 were at comfortable levels, exceeding their five-year average level.
Furthermore, the Conference noted that, although all indicators continue to show that the mar-
ket is fundamentally well-supplied, world crude oil prices have resumed their increase. This is
due to a number of factors, mainly the late cold winter spell in the northern hemisphere, the
expectation of unabated strength in demand over the medium term, as well as price pressure
and volatility coming from increased activity of non-commercials in the futures markets, such
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