OPEC Meeting Fails to Address Rising Oil Price

The Third OPEC Summit ended yesterday, leaving open debate about rising oil costs, the falling US dollar and global oil markets.

It was the first meeting of the group since 2000.

This year's event looked at the stability of global energy markets, energy for sustainable development and energy and the environment but did not deliver clear outcomes for how oil producers were going to handle record rising prices and demand.

The OPEC nations did, however, say they had faith in their ability to provide an "adequate" supply of oil to its Western consumers.

"We recognise the importance of reliable, affordable and competitive energy supplies in ensuring global prosperity and the role of petroleum in world energy consumption," a press release put out by OPEC after the summit says.

"We also recognise . . . our organisation's mission of securing the efficient, economic and regular supply of petroleum to consumers, with a steady and reasonable income to the petroleum resource-owning producers and a far return on capital to those investing in the petroleum industry."

OPEC members say they expect global economic and energy demand to grow, thereby creating market volatility and underlying uncertainties, and put these as its greatest challenges for the years ahead.

"The central role that petroleum plays in the economies of our countries, as well as the world, makes petroleum market stability essential, not only for resource conservation, but also to our economic and social development," OPEC says.

OPEC pledged to work towards achieving stable and competitive petroleum prices as well as enhancing energy investment.

It also says it wants the international business community and governments to facilitate investment and the transfer of technology to member nations and would like to see governments adopt transparent, non-discriminatory and predictable trade and fiscal polices.

By Penny Jones