Azerbaijan, Baku, Jan. 29 / Trend A.Badalova/
OPEC does not envisage oil prices collapse, however organization's members should understand some of the potential effects of price falling, OPEC Secretary General Abdalla El-Badri said at the Chatham House Conference, which is being held in London, on January 28-29.
The speech of the Secretary General is published at OPEC's official website.
El-Badri said OPEC Member Countries will receive less revenue as the result of falling oil prices. "It is important to note that petroleum revenue plays a central role in the economic and social development of our member-states," El-Badri said.
"I believe it is becoming increasingly crucial for oil producers who still depend heavily on oil revenues to look to other sources of income. Diversity, in this regard, is vital," El-Badri added.
According to El-Badri, there are several factors that lie behind the fear of oil price weakness. Among them he mentioned a slowdown in the global economy; supply outstripping demand; expanding oil inventories; and increasing spare capacity.
El-Badri also stressed that at present global oil market is well-balanced.
The 20-to-30-percent change in prices, that was observed in 2012, according to El-Badri, occurred despite the market being well-supplied, with OECD crude stocks above their five-year average, and with OPEC spare capacity at healthy levels.
"And looking ahead to 2013, the market is expected to remain well-supplied to meet the expected demand growth," El-Badri said.