2005 - OPEC

Brussels on 9 June, including the first joint roundtable in Vienna on 21 November when recent
oil market developments and future prospects were addressed.
It is recalled that this Dialogue is seen by the EU as part of a broader approach to strengthen
energy relationships with the main oil and gas suppliers, and by OPEC as a significant further
step in its continued efforts to enhance understanding and cooperation among oil producers
and consumers. They emphasised once again the importance of maintaining the dialogue
when prices are low, as well as high. Both sides recognise the importance of an effective
framework enabling an exchange of views on energy issues of common interest, and the
potential this has for contributing to stability, transparency and predictability in the interna-
tional oil market.
Participants at today’s meeting reviewed the report from the first joint roundtable on oil market
developments, welcoming the constructive nature of the exchange of views and information,
and discussions, and recognising two identified areas of mutual interest for further reflection,
namely the refining sector and financial markets. In this connection, they recommended that
a study on refining could be undertaken and that a workshop on the financial markets, with
broad participation, could be organised, following further preparatory research work.
The participants, while expressing concern about continued oil market volatility, welcomed the
moderation in oil prices in recent weeks. They acknowledged the positive impacts of OPEC’s
actions to raise output, as well as to implement costly investment plans to accelerate the ex-
pansion of crude production capacity. They reiterated the importance of market stability and
reasonable prices for both producers and consumers, for the world economy at large, and
especially the economies of the developing countries. In this connection they recognised that
extreme prices, in either direction, over a sustained period are potentially damaging and,
therefore, not desirable. The participants confirmed not only the importance of mobilising
investments both in the upstream and downstream, and ensuring adequate spare capacity
and stocks, but also the need to reduce the uncertainties associated with the level of future
oil demand.
Publication by OPEC and other producers of information about their investment plans in up-
stream and downstream was welcomed as a further means of contributing to market stability,
as would greater clarity in the demand outlook. They also acknowledged that actions on the
part of both the EU, through the strong support for the emergency oil stocks release within the
IEA mechanism, and OPEC, by making available to the market its spare capacity of around 2
mb/d for a period of three months as of 1 October, should it be called for, amongst others, had
helped calm markets after the devastation caused by Hurricanes Katrina and Rita in the US. They
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