Having reviewed the current oil market, the recently convened Opec meeting noted ...

Having reviewed the current oil market, the recently convened Opec meeting noted that, whilst the global economy appeared to be improving, only normal, seasonal growth in demand is expected for the fourth quarter, and the market continues to be well-supplied. In view of the continued rise in non-Opec supplies and the ongoing recovery in Iraqi production, stocks have been replenished and are rapidly reaching normal seasonal levels, with the supply/demand balance for the 4Q2003 and 1Q2004 indicating a contra-seasonal stock build-up. This could have a destabilising effect on the market that requires a reduction of supplies from all producers to ensure stability, stated Opec. Also noting the gradual return of Iraq to the market, and in order to ensure balance to the market, Opec decided to remove 900,000 b/d of production and return to a ceiling of 24.5mn b/d with effect from 1 November 2003. An Extraordinary Meeting is to be convened in Vienna on 4 December 2003, to review market developments and take whatever measures Opec deems appropriate at that time. The next Ordinary Meeting will convene in Vienna on 10 March 2004.