The Organisation of Petroleum Exporting Countries (Opec) said on Saturday it is committed to support the stability of the world economy by responding to the world’s demand for oil, and support sustainable development in the Middle East.
In an address at the Dead Sea summit of the World Economic Forum in Jordan, Opec president Sheikh Ahmad Fahd Al Sabah said the cartel will continue to respond to the world demand for crude oil, despite a diminishing linkage between world growth and oil prices.
Sheikh Ahmad, who is also Energy Minister of Kuwait, said the oil-rich countries in the Gulf are prepared to contribute to the region’s sustainable development, but said ”others should help in boosting stability of the region”.
”Opec is keen on the growth and stability of the world economy through permanent communication with consuming countries and firms with a view to arriving at just crude prices that take into account the investments committed by member states to shore up their production capacities,” he said.
Sheikh Ahmad reported a recent ”change in Opec’s production culture” that focuses on increasing investments in oil industry.
Opec has ”started to adopt a new approach that focuses on stockpiles, and we succeeded in quelling fears of producing countries that a big increase in demand will take place in the fourth quarter of 2005”, he said.
He also pointed out that even though oil prices and world economic growth are directly connected, rising oil prices have not stopped economic growth.
”The experience of the last quarter of 2004 indicate that the world economy was growing at a rate of 4% while crude prices were going up,” he said.
He pointed out that Opec raised its output ceiling by four million barrels a day in 2004 to ensure ”crude flows and stability of world markets”.
Turning to the theme of the World Economic Forum conference, the Opec chief said it is vital to reform the education system and invest surplus petrodollars in productive projects in order to reach shore up economic development in the Middle East.
”We can utilise our experience in building petrochemical industries and refineries as well as investing surplus revenues in boosting sustainable development in the region,” he said.
”However, the world has to help us not only in terms of transfer of technology and experience, but also in maintaining stability in the region, which is vital for the whole world,” he added, referring to the situation in the Palestinian territories and Iraq. — Sapa-DPA