2002 - OPEC

2002, but that it would review prevailing market conditions before deciding whether to extend export
restrictions to the middle of the year.
“We welcome the contribution that Russia and other non-OPEC producers are making towards
stabilizing oil prices,” Shihab-Eldin said recently. “This is exactly the kind of co-operation we in OPEC
are attempting to foster.” He maintained that the welfare of the international oil market was the
responsibility of all producers.
During the talks, OPEC will review, with Russia, its oil market outlook, especially the supply and demand
balance, and will seek to ascertain what action Russia plans to take during the second quarter.
“It is imperative that the cuts already in place are continued into this period, to ensure that a concrete
floor remains firmly under prices ahead of the summer months,” Shihab-Eldin added.
Earlier this week (February 27), Conference President Lukman welcomed a decision by the Government
of another leading non OPEC producer, Norway, to carry over its first-quarter commitment to cut
output by 150,000 b/d to the second quarter. “In taking this action,” he said, “Norway will be greatly
supporting OPEC’s efforts to balance global supply and demand, which is necessary for stabilizing
crude oil prices.”
If other leading non-OPEC producers followed Norway’s example, “a concerted and co-ordinated effort
can be sustained in the market, at least for the first half of this year,” Lukman added.
There is, however, a growing consensus among forecasters that the world economy will begin to recover
in the second half of this year, increasing the call on oil and triggering a rebound in prices.
“Co-operation is necessary to maintain stability in the market until well into 2003, by which time
sufficient demand may have developed to allow both OPEC and non-OPEC producers to relax reductions,”
says Secretary General Rodríguez Araque.
Other visits to Moscow are planned by senior officials from OPEC Members Algeria and Venezuela, in the
build-up to the forthcoming Meeting of the OPEC Conference, which begins on March 15 in Vienna,
Austria.
Background information
OPEC reduced production by a total of 3.5m b/d last year, in a bid to stabilize the oil market, which
was then thrown into turmoil by the events of September 11. Within a month, the price of OPEC’s
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