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OPEC Conference president: oil market searching for stability and balance

Oil&Gas Materials 27 November 2014 16:37 (UTC +04:00)
The recent price developments are a sign that the oil market is currently searching for stability and balance...
OPEC Conference president: oil market searching for stability and balance

Vienna, Austria, Nov. 27

By Altay Aleskerov - Trend:

The recent price developments are a sign that the oil market is currently searching for stability and balance, Abdourhman Ataher Al-Ahirish, Libya's Vice Prime Minister for Corporations and President of the OPEC Conference said in his opening address at OPEC's 166th meeting in Vienna.

He said that global economic growth in 2015 is expected to grow to 3.6 percent from 3.2 percent in the current year.

"In line with this economic outlook, world oil demand in 2015 is forecast to grow by around 1.1 million barrels per day, with total world consumption at around 92.3 million barrels per day," Al-Ahirish said.

Non-OPEC oil supply is also anticipated to rise next year by 1.4 million barrels per day to average 57.3 million barrels per day, according to Al-Ahirish.

"A careful look at the current situation suggests the recent fall in prices may not be exclusively attributed to oil market fundamentals," he said.

"Ample supply, moderate demand, a stronger US dollar and uncertainties about global economic growth have been key factors in this recent price trend. In addition, as OPEC has noted in the past, the impact of speculative activity in the oil market has also been an important factor," he added.

"Nevertheless, it is important to recognize that if the recent price trend continues, the long-term sustainability of capacity expansion plans and investment projects may be put at risk," he said.

He added that OPEC is committed to engaging further in international dialogue and cooperation efforts - through participation in meetings, symposia and workshops.

The 166th Meeting of the OPEC Conference is taking place in Vienna on November 27. Member countries of the cartel will consider the ways how to stabilize the situation on the oil market in the light of the prices' fall and will make a decision on production quotas.

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