Kuwait- OPEC's annual meeting to be overshadowed by crude price crisis
Date
12/3/2015 4:54:11 AM
(MENAFN- Kuwait News Agency (KUNA))
By Abdelwaheb Al-Guyed
VIENNA Dec 3 (KUNA) -- The 168th Meeting of the OPEC Conference is set to kick off on Friday with conferees expected to focus their deliberations on severe drop in crude oil prices (70 percent) where the oil barrel went down to less than USD 40.
They will also discuss a report by OPEC's tripartite Ministerial Market Monitoring Committee on forecast supply and demand. According to OPEC the supply and demand are at good rates but there are still no clear indications regarding causes of the drastic prices' fall.
Meanwhile OPEC sources who requested anonymity told Kuwait News Agency (KUNA) that the Secretary General's issue will be on the meeting's agenda. However the sources noted that it is not yet clear whether the 12 member states will vote for a new candidate during the event or decide to extend term of current Secretary General Abdalla El-Badri.
On his part Austrian energy market expert Herbert Gartner told KUNA on Thursday that the meeting is held amidst severe conditions in oil markets and other pressuring factors mainly the agreement signed between Iran and the 5+1 group which will allow the country to pump more oil in the markets thus fueling anticipations that the prices will drop further.
With Iran's ability to play a big role in the oil markets OPEC is pressured to specify production quota for each member country to face the increase in supply and reduce the negative impact on oil prices Gartner explained.
Meanwhile economic and oil expert Bashir Aleyya said the drop in crude oil prices would cause deficit in the GCC states in the long term despite the huge financial reserve these countries have.
He noted the huge drop in oil prices within the last three years where crude oil went from USD 112 and 100 per barrel in 2012 to USD 45 or less pb in 2015. However OPEC did not lower its production ceiling of over 30 million barrel per day he added.
Aleyya also mentioned that the unstable prices were of benefit to consumer states or developing countries as the low prices allowed them to use the money to increase the rate of local and foreign investments.
OPEC's contracts slightly rose by 19 cents last November where the oil barrel reached about USD 45. The west Texas crude rose by 82 cents reaching USD 46.29 pb while Brent crude oil rose by 75 cents reaching USD 49.29 pb.(end) amq.ag
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