171st OPEC Meeting: Draft Communique

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Summary

Tentative programme.

Draft meeting communique.

Conclusion: no market intervention unless prices break $40.

OPEC will meet tomorrow at the OPEC Secretariat Helferstorferstrasse 17 A-1010 Vienna, Austria.

Tentative Programme

10.00 hrs. Opening Session of the 171st Meeting of the Conference

Attendance: All OPEC Heads of Delegation and Delegates

Venue: OPEC Secretariat

12.00 hrs. Closed Session of the 171st Meeting of the Conference

Attendance: OPEC Heads of Delegation, the Secretary General and Chairman of the Board of Governors

Venue: OPEC Secretariat

16.00 hrs. Press Conference by the President of the OPEC Conference and the Secretary General

Venue: OPEC Secretariat

I've taken the liberty of drafting their communique to post after the meeting to save them some time.

171st Meeting of the OPEC Conference

The 171st Meeting of the Conference of the Organization of the Petroleum Exporting Countries (OPEC) was held in Vienna, Austria, on Wednesday, 30th November 2016, under the Chairmanship of its President, HE Dr. Mohammed Bin Saleh Al-Sada, Minister of Energy and Industry of the State of Qatar and Head of its Delegation.

The Conference acknowledged and thanked HE Mohammed Sanusi Barkindo, from Nigeria, Secretary General of the Organization, and HE Noureddine Boutarfa, Algeria's Minister of Energy, for their untiring efforts and support for the ongoing consultations between all parties involved in the preparations for this meeting.

The Conference observed that since the last meeting in September that prices have been relatively stable. This is a testament to the fact that the market is going through the balancing process. The latest numbers, however, still show OECD and non-OECD inventories standing above the five-year average and that these need to be drawn down to normal levels. The Conference also noted the very low investment level currently prevailing in the oil industry and emphasized the need to increase upstream investment in order to achieve long-term balance in the oil markets.

The Conference expects that demand will continue to recover in 2017, that prices will rise accordingly, and that this will happen without intervention from OPEC. Based on the above observations and analysis, OPEC Member Countries have decided that the Secretariat should continue to closely monitor developments in the coming months, and if necessary, recommend to Member Countries to meet again and suggest further measures according to prevailing market conditions. The Conference also called upon non-OPEC countries to join its endeavors, given the importance of cooperation among all major exporting countries to collectively balance the oil markets.

Member Countries, in agreeing to this decision, confirmed their commitment to a stable and balanced oil market, with prices at levels that are suitable for both producers and consumers, while emphasizing their commitment to ensuring a long-term stable and balanced oil market for both producers and consumers.

Finally, the Conference expressed its continued sincere gratitude to the Government and to the people of the Republic of Austria, as well as the authorities of the City of Vienna, for their warm hospitality and excellent arrangements made for the Conference Meeting.

end

Conclusions

The Conference will take no action other than to threaten to meet if prices drop too much. If prices break below $40, expect more press releases from OPEC.

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