JULY 2 OIL PRODUCER-CONSUMER CONFERENCE SET

Venezuela and France have unveiled plans for a ministerial level meeting of oil producing and consuming nations in Paris July 1-2. Representatives of the Organization of Petroleum Countries, International Energy Agency, 20 other nations, World Bank, International Monetary Fund, and other multilateral organizations have been invited.

May 27, 1991

3 min read

Venezuela and France have unveiled plans for a ministerial level meeting of oil producing and consuming nations in Paris July 1-2.

Representatives of the Organization of Petroleum Countries, International Energy Agency, 20 other nations, World Bank, International Monetary Fund, and other multilateral organizations have been invited.

The conference, a 1990 proposal of Venezuelan President Carlos Andres Perez, while pointedly not intended to influence oil prices, is the first official ministerial level meeting involving OPEC and IEA. The latter has in the past opposed the idea of such a meeting.

A joint communique by the two countries did not identify the invitees. However, Middle East Economic Survey (MEES), Nicosia, said Saudi Arabia, Iran, Venezuela, Nigeria, Mexico, U.S.S.R., Norway, and Canada have been invited to represent producers, while France, Germany, Italy, Japan, India, Brazil, and Poland have been invited to represent consumers.

CONFERENCE OBJECTIVES

In the communique, the two governments said the goal of the conference "is not to set oil prices or the level of supply and demand" but to improve market operations "through a greater interchange of information and by sending a political signal of mutual confidence by means of open discussion of topics of common interest."

Venezuelan Minister of Energy and Mines Celestino Armas said in Caracas last week the Paris meeting will be informal and is not expected to result in any concrete agreements. Further, this new dialogue between consumers and producers is not meant to replace or change any organizations that deal with world energy, he said.

Armas cited as conference discussion points exchanges of information on energy potential among attending nations, details on energy policy, financing prospects and requirements in energy sectors, technology transfer, futures markets, and environmental issues.

It is not yet clear what role national oil companies or multinational companies will play at the conference. State oil companies will, however, have direct input through government officials dealing with energy matters and may be allowed to attend.

U.S., U.K. RESISTANCE

While getting support elsewhere in the world, the U.S. government has remained cool to the idea of participating in an oil producers-consumers conference.

President Bush recently reiterated his administration's view that market forces should be allowed to determine movements of world oil prices and supply/demand.

U.S. officials are concerned some governments may seek to use the conference as a means to place new, politically motivated pressure on markets.

In a recent visit with Bush, Perez invited the U.S. government to attend the conference as an observer. Bush took the invitation under consideration, Perez said.

MEES also said Britain similarly remains aloof to the idea of a producer-consumer conference.

OPEC VIEW

A May 13-14 meeting of OPEC analysts has reaffirmed the cartel's view that more dialogue is needed between consumers and producers as a way to promote stability in world oil markets, MEES said.

The OPEC analysts are developing recommendations focusing on overall policy and confidence building measures within a framework of global energy cooperation rather than on setting price and production levels.

The analysts' recommendations will be submitted to the full OPEC ministerial meeting scheduled for June 4.