The 133rd (Extraordinary) Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) convened in Cairo, Egypt, on 10 December 2004, under the Chairmanship of its President, HE Dr. Purnomo Yusgiantoro, Minister of Energy & Mineral Resources of Indonesia and Head of its Delegation, and its Alternate President, HE Sheikh Ahmad Fahad Al-Ahmad Al-Sabah, Minister of Oil of the State of Kuwait and Head of its Delegation.
Having reviewed the oil market outlook, including the overall demand/supply expectations for the year 2005, in particular the first and second quarters, as well as the outlook for the oil market in the medium term, the Conference observed that crude oil prices
have receded from their record highs as a consequence of the actions taken by the Organization to ensure that the market remains well supplied, the adequacy of supply evidenced by the continued replenishment and build-up of commercial oil stocks. Indeed, the Conference noted that current crude oil prices
reflect convergence towards market fundamentals.
With stocks back to normal and prices having moderated ahead of the winter season, when inventories are normally withdrawn, the Conference decided to maintain the currently agreed ceiling and individual production levels. Without prejudice to the above, and while reiterating the Organizationís commitment to ensuring adequate supplies of petroleum to consuming nations, and in order to prevent crude oil prices
continuing to deteriorate to undesirably low levels, Member Countries, which have responded to the market need for additional supply over the course of this year by producing above their allocations, have agreed to collectively reduce the over-production by 1.0 mb/d from their current actual output, effective 1 January 2005.
Further, taking into consideration the market outlook for 2005, in particular the seasonally, lower-demand second quarter, when oil prices
are expected to come under growing pressure, the Conference reaffirmed its determination to take all measures deemed necessary to keep market stability and maintain prices at reasonable levels, for the benefit of producers and consumers alike. With this in mind, the Conference decided to convene an Extraordinary Meeting in Vienna, Austria, on 30 January 2005 to review market developments. The Conference reiterated that its next Ordinary Meeting will be held on 16 March 2005, in Isfahan, I.R. Iran.
The issue of the appointment of the Secretary General having been deferred until the next Meeting of the Conference, the incoming President of the Conference, HE Sheikh Ahmad Fahad Al-Ahmad Al-Sabah, Minister of Oil of the State of Kuwait, will assume the responsibilities of the Secretary General from 1 January 2005, in accordance with the provisions of Resolution No. 128.406.
The Conference paid tribute to the services of its outgoing President, HE Dr. Purnomo Yusgiantoro, Minister of Energy & Mineral Resources of Indonesia, expressing particular appreciation of his also shouldering the responsibilities of Secretary General of the Organization during the year 2004, and thanked Dr. Maizar Rahman, the Governor for the Indonesia, for his excellent conduct of the day-to-day affairs of the Secretariat during the same period.
The Conference approved the Budget of the Organization for the year 2005.
The Conference welcomed a proposal (as a follow-up to the 9th International Energy Forum (IEF) held in Amsterdam in May 2004) received from the European Union (EU) to establish an OPEC-EU Dialogue aimed at furthering constructive co-operation between oil producers and consumers.
The Conference passed Resolutions that will be published on 10 January 2005, after ratification by Member Countries.