OPEC seeks cooperation in curbing market volatility
OPEC Secy. Gen. Abdalla Salem El-Badri said nonfundamentals are now the major drivers of the oil and gas markets, and he called on consumers, producers, and investors to cooperate to find a lasting solution to the market's volatility.
By OGJ editors
HOUSTON, May 21 -- OPEC Secy. Gen. Abdalla Salem El-Badri, on a week long working visit to Latin American OPEC member countries Venezuela and Ecuador, said the crude oil market remains well supplied, with OECD stocks increasing above their 5-year average, but he expressed concern about the market's recent volatility, noting that nonfundamentals are now the major drivers of the market.
While assuring that OPEC will strive to bring stability to the oil market, he called on other stakeholders in the industry—consumers, producers, and investors—to cooperate to find a lasting solution to the volatility.
El-Badri met with Venezuela President Hugo Chavez May 21 in Caracas to discuss the oil market situation; the need for greater cooperation among OPEC members in technology, industry, and finance; and other OPEC issues.
El-Badri also met with Venezuela's minister of energy and president of Petroleos de Venezuela SA Rafael Ramirez and his top officials, reiterating the OPEC's commitment to work for stability of the international oil market. He stressed that OPEC monitors global oil markets regularly and is ready to act if and when necessary to ensure market stability and adequate supplies.
Badri will visit Ecuador May 21-25.