Brussels, 22/06/2007 (Agence Europe) - Results from the different EU-OPEC discussions on technology for carbon storage and capture (Riyadh, September 2006), the impact of the financial markets on oil prices and their volatility (Vienna, December 2006) and energy policies (Brussels, last May: EUROPE 9437) were at the centre of the work of the 4th EU-OPEC ministerial meeting on Thursday at OPEC's centre in Vienna. The German minister for the economy, Michael Glos and the Commissioner for energy, Andris Piebalgs, led the European delegation. The minister for energy from the United Arab Emirates, Mohamed Bin Dhaen Al Hamli, in his position as the acting president of the OPEC Council, led the oil cartel.
At the end of the work, the parties concluded that the level of oil prices remained very high but that there was not concern about their impact on market development. In a joint press release, the EU underlined its concern about “expected seasonal increase in demand coupled with possible disruptions over the next few months which could lead to tightening in the oil market”. OPEC provided assurances by reaffirming “its longstanding commitment to ensuring sound supply fundamentals at all times, and to offering an adequate level of spare capacity, for the benefit of the world at large”. The different parties reiterated 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”. They also underlined the “importance of secure future demand for oil and oil products in spurring timely investment both upstream and downstream. Ministers noted that, at an international level, oil would remain “the leading energy source for the foreseeable future”. They also agreed that “in the long run, on the basis of present information, there are enough conventional and non-conventional oil resources globally to meet the expected significant growth in demand”. Nevertheless, they did underline the need to diversify the energy cluster by calling on renewables, bio-fuels and clean technologies. Finally, the parties decided to carry out several joint actions: implementation of a working group to set up a Joint Energy Technology Centre; holding a workshop on the refinery sector at the end of 2007 or beginning of 2008 in Brussels; organising a study into the impact of financial markets on oil price volatility, as well as discussions on how to enhance cooperation in carbon storage and capture. The 5th EU/OPEC meeting will take place in June 2008. (eh)