OPEC has announced that it will maintain the oil production level at 30.0 million barrels a day in the interest of maintaining market equilibrium, according to an OPEC report. In taking this decision, Member Countries re-confirmed their readiness to swiftly respond to developments which could have an adverse impact on the maintenance of an orderly and balanced oil market.
The Conference also reviewed the oil market outlook, as presented by the Secretary General, Abdalla S El-Badri, in particular supply/demand projections for 2014. The Conference also considered the global economic outlook, again noting: the high sovereign debt in the Euro-zone; high unemployment in the advanced economies, especially the Euro-zone; and slow growth, coupled with inflation risk, in the emerging economies. Indeed, the biggest challenge facing global oil markets in 2014 is this global economic uncertainty, with the fragility of the Euro-zone remaining a cause for concern, according to OPEC. It was also noted that, although world oil demand is forecast to increase during the year 2014, this will be more than offset by the projected increase in non-OPEC supply.
OPEC has agreed on the need to be vigilant, given the uncertainties arising from the enduring weaknesses 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 well informed of developments.
The Conference appointed Dr Ali Obaid Al Yabhouni, the United Arab Emirates’ Governor for OPEC, as Chairman of the Board of Governors for the year 2014, and Dr Bernard Mommer, Venezuelan Governor for OPEC, as Alternate Chairman for the same period, with effect from 1 January 2014.
