Date of release : 10-06-2005

Policy area : General Affairs and External Relations

At the close of the EU-OPEC meeting held at the European Commission in Brussels on 9 June 2005, Jeannot Krecké, Luxembourg Minister and current President of the "Competitivity" Council of the European Union, indicated that representatives of OPEC met EU officials for the first time to discuss the global petroleum market.

 In a joint statement, the EU and OPEC recognised that extreme prices, in either direction, over a sustained period, could create problems for both producers and consumers.  The EU and OPEC shared the view that all parties should pursue efforts aimed at achieving greater market stability, with reasonable prices that are consistent with the need for healthy global economic growth and steady revenue for the producing countries.

 The OPEC President explained that current market supplies would ensure demands are met for the next two quarters, while highlighting that in the past there has been no shortage of market supply.

Commenting on production figures, Minister Jeannot Krecké outlined that supply is exceeding demand and he hoped that the market would react along these lines.

THE EU and OPEC consented to increase the capacity and improve the quality of refining.

 The partners agreed to continue dialogue under the British Presidency.