At a recent conference in Vienna, the Organization of the Petroleum Exporting Countries (OPEC) elected HE Hani Abdulaziz Hussain, Minister of Oil of the State of Kuwait, as President of the Conference for one year and extended the tenure of HE Abdalla Salem El-Badri as Secretary General for a period of one year. Both terms will come into effect starting January 1, 2013.
The conference also reviewed the oil market outlook as presented by the Secretary General, in particular the projections for supply/demand in 2013. Price volatility was cited as a weakness throughout 2012, mostly a reflection of increased levels of speculation in the commodities markets, exacerbated by geopolitical tensions and laterally, exceptional weather conditions.
According to a statement by OPEC the biggest challenge facing global oil markets in 2013 is uncertainty surrounding the global economy, with the fragility of the Euro-zone remaining a major concern. The Conference further noted that, although world oil demand is forecast to increase slightly during the year 2013, this is likely to be more than offset by the projected increase in non-OPEC supply and that projected demand for OPEC crude in 2013 is expected to contract to 29.7 mb/d.
The conference has decided to maintain the current production level of 30.0 mb/d, and agreed that if necessary, member countries would take steps to ensure market balance and reasonable price levels for producers and consumers.
The Conference appointed Mr Yasser M. Mufti, Saudi Arabian Governor for OPEC, as Chairman of the Board of Governors for the year 2013, Dr Ali Obaid Al Yabhouni, the United Arab Emirates’ Governor for OPEC, as Alternate Chairman and HE Dr Abdel Bari Ali Al-Arousi, Minister of Oil and Gas of Libya and Head of its Delegation, as Alternate President, for the same period with effect from 1 January 2013.
