The price of organization of Petroleum Exporting Countries, OPEC basket of 12 crudes has risen from $107.49 to $108.15 per barrel, according to OPEC Secretariat calculations.
The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
The organisation rose from a crucial meeting on December 4, 2013 with the determination to carry out some measures capable of making positive impact on the volatile oil market.
For instance, it reviewed the oil market outlook, as presented by the Secretary General, in particular supply/demand projections for 2014.
The Conference 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.
It stated, “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.
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.
The Organisation stated, “Nevertheless, in the interest of maintaining market equilibrium, the Conference decided to maintain the current production level of 30.0 million barrels a day.
It stated that 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 Organisation stated, “Agreeing 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.
It stated, “The Conference decided to extend the tenure of HE Abdalla S. El- Badri as Secretary General for a period of one year, with effect from 1 January 2014. The Conference approved the Budget of the Organisation for the year 2014.
The Conference decided that its next Ordinary Meeting will convene in Vienna, Austria, on Wednesday, 11 June 2014.
It stated, “Finally, the Conference reiterated its appreciation to the Government and people of the Republic of Austria, as well as the authorities of the City of Vienna, for their warm hospitality and the excellent arrangements made for the Meeting.”