A three day oil conference opened in London on Friday (14 July) at which OPEC experts were to discuss the impact of Dollar depreciation on oil revenues.
A three day oil conference opened in London on Friday (14 July) at which OPEC experts were to discuss the impact of Dollar depreciation on oil revenues. For security reasons no delegate list was issued, but the conference was attended by thirty top-level experts from OPEC member states.
SYNOPSIS: The committee was appointed by an OPEC ministerial conference held in Geneva in June, at which oil prices were frozen until the end of this year. The London meeting was chaired by Kuwaiti Oil Minister Sheikh Ali Khalifa Al-Sabah.
The Sheikh, who is also the current president of OPEC, is empowered to call an extraordinary conference to take action to compensate members for the decline of the US Dollar. Within OPEC there are notable differences of opinion as to whether producers can protect themselves through a compensatory price rise.
Saudi Arabia and Iran are not alone in the argument that the market demand is not strong enough to sustain an increase, and that it might weaken the Dollar further.
One matter which was agreed at Geneva was that the Dollar should remain the common means of payment. It is expected that this committee will look at acceptable ways of regulating the Dollar price of oil periodically to reflect the strength or weakness of the currency. The major OPEC conference will be in Abu Dhabi on December 16th.