She was elected President of the oil cartel yesterday at its 166th general meeting in Vienna, Austria. The minister takes over from Libyan Vice Prime Minister for Corporations, Abdourhman Atahar Al-Ahirish and will serve a one-year term.
For the next one year, she would lead the expertise of the OPEC Secretariat, professionals in OPEC member countries and the organization’s Economic Commission Board, as well as input from various other stakeholders to steer the ship of the organisation to maintain market stability; highlight and deepen the understanding of possible future challenges and opportunities that lie ahead for the oil industry and also create a channel to encourage dialogue, cooperation and transparency between OPEC and other players in the industry.
The new OPEC President emerged at a very critical time in the organisation and invariably world economy. Part of issues that form a litmus test for the group’s new president is how to ensure price of oil in the international market appreciates.
At the opening of the meeting, Al-Ahirish said that the recent price developments were a sign that the oil market was at present searching for stability and balance.
“At today’s (yesterday’s) meeting, OPEC will consider these issues–and discuss the market outlook for 2015. As always, our deliberations will be focused on contributing towards stability in the market. This is what most benefits global economic growth–and it is what matters most to all stakeholders, producers and consumers alike.”
He further said that the global economic recovery had continued, although at lower levels, while the world oil market had seen ample supplies, adding that given this backdrop–and even though some uncertainties remain–global economic growth in 2015 was expected to grow to 3.6 percent from 3.2 per cent in the current year.
“In line with this economic outlook, world oil demand in 2015 is forecast to grow by around 1.1 million barrels per day, with total world consumption at around 92.3 million barrels per day
“The bulk of this net oil demand growth will continue to come from non-OECD countries. Non-OPEC oil supply is also anticipated to rise next year by 1.4 million barrels per day to average 57.3 million barrels per day,” he said.
Meanwhile, the price of oil has dropped after OPEC resolved not to slash output at its meeting in Vienna.
OPEC’s Secretary-General, Abdallah Salem el-Badri, said the group would attempt to shore up prices by reducing production.
The British Broadcasting Corporation, BBC quoted him as saying that, “There’s a price decline. That does not mean that we should really rush and do something.
Soon after OPEC made its decision public, Brent crude fell below $72 a barrel, hitting lows recorded in August 2010.
At the parley, the 12 OPEC members maintain edproduction at 30 million barrels per day, the output that was arrived at December 2011.
“We don’t want to panic. I mean it,” said Mr. el-Badri. “We want to see the market, how the market behaves, because the decline of the price does not reflect a fundamental change.”
Oil prices have fallen 30 per cent since June on sluggish global demand and rising production from the United States.
The fall in the oil price has been causing concern for several members of the oil cartel, as most require a price above $80 a barrel to balance their government budgets and many need prices to be above $100 a barrel.
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