World Oil Market Situation and OPEC

3Dec
2001

Our guest speaker, Dr Alí Rodríguez Araque, Secretary General of OPEC, the Organisation of Petroleum Exporting Countries (Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela), described the situation of the world oil market as it developed after the tragic events of 11th September. Those events have had major political and economic repercussions including immediate sharp price hikes and, later, sharp price declines, driven by speculative trading and market psychology. OPEC expressed then the commitment to ensure adequate supplies and to strengthen market stability. OPEC invited non-OPEC producing nations (Angola, Egypt, Equatorial Guinea, Kazakhstan, Mexico, the Sultanate of Oman, the Russian Federation and Republic of Sudan)to monitor jointly oil market developments and to suggest possible actions to be taken on both sides. An extraordinary meeting of the Conference of OPEC will be held on 14 November to review the situations, just a few days before our event.

Dr. Alí Rodríguez emphasised the sense of its responsibilities which OPEC is displaying in the light of the difficulties of the world oil market which has been affected by three detrimental factors in 2001 : the economic recession, fall in demand and over-supply. OPEC reactions had been prudent and aimed at stabilising the market. Mrs. de Palacio payed hommage to OPEC for its responsible attitude, particularly in the wake of the terrorist attacks of 11 September which could have triggered off huge price rises. (Dr. Ali Rodriguez Araque’s speech)

Mrs Loyola de Palacio, Vice-President of the European Commission and Commissionner responsible in particular for energy graced the dinner debate with her active presence.

This European Energy Foundation unique event concluded its 2001 series of events. As usual, it gathered Member of the European Parliament together with representatives from the Industry and, exceptionally, Members of the Committee on Economic Affairs and Development of the Parliamentary Assembly of the Council of Europe.