Vienna (Platts)--21Jun2007

OPEC and the European Union Thursday expressed their mutual desire to see
"reasonable" oil prices that would not harm the world economy but would be
high enough to encourage upstream investment in producing countries.
     After a meeting at OPEC's Vienna secretariat, the EU said it was worried
about a possible tightening of the world oil market in the coming months,
although OPEC reiterated its commitment to making sure the market remained
well-supplied.
     "With regard to the oil market situation, the EU expressed its concern
about expected seasonal increase in demand coupled with possible supply
disruptions over the next few months which could lead to tightening in the oil
market. OPEC reiterated in its presentation that the present oil market
remains well supplied, with commercial crude oil stocks above five-year
average and an increasing level of upstream spare capacity," a joint statement
issued after the meeting said.
     "Participants expressed once again their mutual interest in stable,
transparent and predictable oil markets, with reasonable prices that are
consistent with the need for healthy world economic growth and steady revenue
streams for producing countries, and that are conducive to the expansion of
capacity to meet rising oil demand," the statement said.
     "They recognised the importance of secure future demand for crude and
products in spurring timely investment both upstream and downstream, thus
contributing to greater security of supply."