TheCable

The Organisation of the Petroleum Exporting Countries (OPEC) on Thursday agreed to keep official joint production target at 30 million barrels per day (bpd), the 12-member group said in a statement at the end of its biannual meeting in Vienna.

OPEC, which met after oil prices had fallen by more than 30 per cent in five months, expressed concern about the scale of oil production from countries outside of OPEC.

OPEC also elected Diezani-Alison Madueke, minister of petroleum resources as the first female president of the organisation. She will succeed Libya’s Abdourhman Ataher Al-Ahirish as OPEC’s President next year.

Here are selected highlights from the OPEC statement obtained from Reuters:

“Recording its concern over the rapid decline in oil prices in recent months, the conference concurred that stable oil prices – at a level which did not affect global economic growth but which, at the same time, allowed producers to receive a decent income and to invest to meet future demand – were vital for world economic wellbeing.

“Accordingly, in the interest of restoring market equilibrium, the conference decided to maintain the production level of 30.0 million barrels per day (bpd), as was agreed in December 2011.

“The conference reviewed the oil market outlook, as presented by the secretary-general, in particular supply/demand projections for the first, second, third and fourth quarters of 2015, with emphasis on the first half of the year.

“The conference also considered forecasts for the world economic outlook and noted that the global economic recovery was continuing, albeit very slowly and unevenly spread, with growth forecast at 3.2 percent for 2014 and 3.6 percent for 2015.

“The conference also noted, importantly, that, although world oil demand is forecast to increase during the year 2015, this will, yet again, be offset by the projected increase of 1.36 million bpd in non-OPEC supply.

“The increase in oil and product stock levels in organisation for economic cooperation and development (OECD) countries, where days of forward cover are comfortably above the five-year average, coupled with the on-going rise in non-OECD inventories, are indications of an extremely well-supplied market.

“As always, in taking this decision, Member Countries confirmed their readiness to respond to developments which could have an adverse impact on the maintenance of an orderly and balanced oil market.

“Agreeing on the need to be vigilant given the uncertainties and risks associated with future developments in the world economy, the Conference directed the Secretariat to continue its close monitoring of developments in supply and demand, as well as non-fundamental factors such as speculative activity, keeping Member Countries fully briefed on developments.”

The conference resolved that its next ordinary meeting will convene in Vienna, Austria, on Friday, June 5, 2015.