The OPEC Meeting concluded on Saturday with the support of the non-OPEC countries (OPEC+), led by Russia, by far the largest producer of the group. (more…)
The 176th Ordinary Meeting of the OPEC Conference (6th OPEC and non-OPEC Ministerial meeting) Vienna, Austria, 1st July 2019
After much deliberation and discussion, over when to meet, from April to late June to early July, OPEC and its non-OPEC partner Russia finally agreed the date but under the direction of Russia.
It really was a surprise when at the end of the first day “No Press Conference Today” was announced. There was much conjecture beforehand, even that there would not be a deal, but it had to happen, with too much oil in the market and the price falling as OPEC wavered. In June they put 1mbpd in to the market and now they want it back.
The 173rd Meeting of the OPEC Conference and the 3rd OPEC and non-OPEC Ministerial Meeting
Vienna, Austria, 30th November, 2017
Like every OPEC Meeting, there was much conjecture beforehand but I felt there that there was only one option,
to hold where they were and roll on, supposedly, for at least another nine months. Ministers seemed keen not to fuel gossip and upset the markets before any official agreement had been made particularly as traders had already built the anticipated cut in to pricing.
The choice was clear – hold on and maintain prices at this level, falter and watch them crash, cut further, push them higher and open the Shale floodgates. Not actually that simple but an easy and quick explanation. However, in the short term that is the right easy solution and OPEC has often thought short term. Yet, following on from the original decision to bring in the cuts, the strategy has worked well particularly as only a couple of years ago OPEC was again being written off as having lost control of the market. But there was a plan that many couldn’t see. The issue now is that re-balancing in one sector requires something similar in another. With the price of oil holding around the $60 level, 14% up on where it was at the last meeting and 40% higher than it was two years ago, even higher prices could work against OPEC.
The 172nd Meeting of the OPEC Conference and 2nd OPEC and non-OPEC Ministerial Meeting Vienna, Austria, 25th May, 2017
This Meeting was extremely important for OPEC and the Austrian authorities too, who were naturally very mindful of the atrocious terrorist attack in Manchester this week and others elsewhere beforehand.
Security had been stepped up to the highest level in years. It has always been in place for OPEC Meetings, but this time there was a greater awareness of the threat, with Ministers from twenty-four countries and market followers from around the world attending a series of meeting over the last few days.
During the opening address, HE Khalid A. Al-Falih, the Saudi Arabian Minister and Conference President announced that the market had moved towards balancing since the last Meeting in November, but that there was more work to do in terms of reducing inventories. International Oil Companies were publishing improved results and investment was returning to the upstream sector. He was optimistic about the future, expecting higher global GDP with healthy oil demand growth particularly from Asia, where most of OPEC’s business now lies. He was also very positive about the agreement between OPEC and non-OPEC producers.
On Monday 8 August, Dr. Mohammad bin Saleh Al-Sada, the Minister of Energy and Industry for Qatar and also the current OPEC President, announced that “Higher oil demand is expected in the 3rd. and 4th. Quarters”. This supposedly signified good news for OPEC and other producers of oil particularly as he then went on to say that the recent decline in oil prices was only temporary. He added that OPEC members, like all other producers, would be attending the International Energy Forum in Algeria from 26 to 28 September and that during this time there would be an opportunity to meet and, I assume, discuss matters of mutual interest.
However, it will not be an official meeting and although this statement was issued by the OPEC Secretariat, so far, there is no reference to any form of OPEC Meeting on the OPEC web site. The statement simply declares that the strategy of not cutting output is working well and that there is no cause for concern, yet the fact that he goes on to say that they will meet, as they are bound to do anyway, sends a message to the watching world that OPEC “could” make a move.