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Key Indicators* In November 2010, the OPECReference basket increased by3.6% or $2.9/bbl to stand at$82.8/bbl.* World Oil Demand was downin November 2010 by 0.6% or500 tb/d from the previous monthlevel to 87.2 million b/d.* World oil supplies were up inNovember 2010 by 0.1% or 100tb/d to 88.4 million b/d.* US crude oil imports wentdown in October 2010 by 3.9%to 8.7 mb/d, US product importsremained unchanged from previousmonth level of 2.46 mb/d.* OECD commercial inventoriesin October 2010 remained unchangedfrom previous monthlevel of 2722 mn bbls. Strategicinventories in OECD-30, SouthAfrica and China increased by 3million bbls to 1772 mn bbls.* The average spot price of naturalgas at the Henry Hub wentup in November 2010 by 5.7% tostand at $3.7/m BTU.* The Price of Japanese &ChineseLNG imports was up in October2010 by $0.1 to $11.1/mBTU in Japan and by $0.2 to$6.8/m BTU in China, and theprice was down by $0.5 to $9.9/mBTU in Korea.* Arab LNG exports to Japan,Korea and China were about2.238 million tons in October2010(a share of 25.5% of totalimports).PETROLEUM DEVELOPMENTS IN THE WORLD MARKET AND MEMBER COUNTRIES *1. PricesThe 158th (Extraordinary) Meeting of the Conference of the Organization ofthe Petroleum Exporting Countries (OPEC) convened in Quito, Ecuador, on 11December 2010, under the Chairmanship of its President, HE Wilson Pástor-Morris, Minister of Non-Renewable Natural Resources of Ecuador and Head ofits Delegation, and its Alternate President, HE Masoud Mir-Kazemi, Minister ofPetroleum of the Islamic Republic of Iran and Head of its Delegation.The Conference was formally opened by HE Rafael Correa Delgado, President ofthe Republic of Ecuador.Having reviewed the oil market outlook, including the overall demand/supplyprojections for the year 2011, the Conference observed that the increase in the annualaverage oil demand in 2011 is likely to be lower than in 2010. This expectationof lower demand growth is coupled with challenging risks to the fragile globaleconomic recovery, including the adverse effect of possible currency conflicts andfears of a second banking crisis in Europe, all of which would negatively impacton oil demand. With the OECD still facing lower industrial output, lagging privateconsumption as well as persistently high unemployment, and with ample sparecapacity throughout the oil supply chain, the Conference agreed to maintain currentoil production levels.In taking this decision, Member Countries acknowledged their commitment toindividually agreed production allocations, as outlined in the Oran Agreement ofDecember 2008, and Ministers repeated their readiness to rapidly respond to anydevelopments that might jeopardize oil market stability and Member Countries’interests. As customary, the Secretariat will continue closely monitoring the market,keeping Member Countries abreast of the situation at all times. The situation will bereviewed at the next Ordinary Meeting of the Conference.As always, the Conference also acknowledged OPEC’s statutory commitment toproviding an economic and regular supply of petroleum to consuming nations whilststabilizing the market and realizing the Organization’s objective of maintainingcrude oil prices at fair and equitable levels, for the well-being of the market and thebenefit of the world at large.Since oil market stability is clearly of benefit to all oil producers, not OPECMember Countries alone, the Conference renewed its call on other oil producers/exporters to cooperate with the Organization in its endeavours to secure oil marketequilibrium.The Conference decided that its next Ordinary Meeting will be held on Thursday,2 June 2011, in Vienna, Austria.* Prepared by the Economics DepartmentVolume 37 Issue 14