OPEC heads of state ended their third summit in the Saudi Arabian capital
Riyadh Sunday with a pledge to ensure adequate and stable supply of oil to
world markets and to invest sufficient money to help meet future demand.
The 13 heads of state and government, meeting less than two weeks after
oil prices hit record highs of close to $100/barrel, said the new investment
would go not only on upstream production capacity increases but also further
downstream, where shortages of refining capacity over the last two years have
often been cited as a reason behind the current high oil prices.
The OPEC leaders, whose countries account for around 40% of the world's
current oil supply, vowed to "undertake the necessary investments to increase
upstream and downstream capacities in our member countries, and, at the same
time, urge consuming nations to provide the environment conducive to petroleum
investments in their countries," according to a formal declaration issued
after the meeting ended.
The summit declaration reaffirmed the group's commitment to "continue
providing adequate, timely, efficient, economic and reliable petroleum
supplies to world markets."
The declaration made no reference to any price level the group considers
desirable, or its thoughts on current prices, saying only that the cartel
would "work with all parties to achieve balanced energy markets and stable and
competitive petroleum prices."
In addition, OPEC urged "all parties to find ways and means to enhance
the efficiency of financial petroleum markets with the aim of reducing short
term price volatility that is harmful to producers and consumers."
The summit was only the third since OPEC was founded in 1960, following
earlier meetings of heads of state in Algiers in 1975 and Caracas in 2000, and
marked the formal return to the group of Ecuador after a 15-year absence.