Download OPEC Firmly Recognizes Importance of Stable, Orderly Oil Market

OPEC Firmly Recognizes Importance of Stable, Orderly Oil
Market
Vienna - OPEC Secretary General Edmund Maduabebe Daukoru addressed here
Tuesday the 139th extraordinary meeting of the OPEC conference in Vienna.
In the opening address, he said "today's extraordinary meeting is the result
of a decision taken when the conference last met, in Kuwait on 12
December, and its purpose is to review the current market situation and
take the appropriate decision on production levels for the second and third
quarters of the year. "It has become the practice since a few years ago to
hold Extraordinary Meetings between our two biannual ordinary meetings,
scheduled for March and September, this is to ensure that our organization
remains abreast of developments in the oil market at all times and that we
can fine tune our production commitments in accordance with the shifting
realities of the market, as well as respond effectively, even at short notice
to any unexpected events as they arise, such as Hurricanes Katrina and
Rita late last summer. "As we meet today, there is continued price
volatility in the market and clearly, we shall be addressing this issue once
again, focussing on the outlook for the coming months. We have
throughout of 45-year history, maintained that volatility is not in the
interest of long-term players in the oil market. All producers - OPEC and
non-OPEC as well as consumers and the major oil companies must,
therefore, do everything they can to stabilize the market. "This is
something OPEC cannot tackle alone. All parties benefit from stability,
and, therefore, all parties must contribute to its achievement. "Early
indications suggest that the world economy will perform well in the first
half of 2006; indeed, the forecast for world GDP growth for the whole of
this year has already been increased slightly, reflecting improved
expectations for Europe, Japan and China, though risks remain visible on
global financial imbalances, and higher interests rates, particularly in the
US. "With substantial increases expected in non-OPEC supply during the
year and with OPEC production already at much higher levels than current
demand, it is clear we are fairly confident about the market outlook for the
year. "But, as we have seen, in particular, over the past two years, nothing
can be taken for granted. This is why we are meeting today to take a good
hard look at the fundamentals and the likely challenges and pressure
points for the year. We remain totally committed to market stability with
prices at reasonable and sustainable levels. "We firmly recognize the
importance of a stable orderly oil market to world economic growth, long
term investment, and the advancement of global prosperity. "We are
encouraged by some important developments that took place last year and
these relate to the energy dialogues OPEC entered into with key markets,"
he concluded. PIN/IRNA
1/31/2006 6:02:00 PM