A significant high-level technical meeting recently took place, helmed by Dr. Ayed S. Al-Qahtani, Director of OPEC’s Research Division, alongside Mr. Christof van Agt Ross, Director of the IEF’s Energy Dialogue, and Mr. Joel Couse, Special Advisor to the IEA.
Delving into critical topics, the discussions at the workshop were divided into three sessions. The first session focused on analyzing the ‘Factors driving oil market volatility’. Subsequently, the second session delved into the topic of ‘Evolving crude benchmarks, price formation, and interaction with derivatives markets’. Finally, the third session centered on ‘Ensuring adequate financing to sustain oil and gas developments’.
Dr. Al-Qahtani emphasized the necessity of substantial investments, stating, “our latest World Oil Outlook highlights cumulative oil-related investment requirements projected till 2045 at approximately $14 trillion, averaging around $610 billion per year. Such extensive investment is imperative to meet the anticipated global oil demand, forecasted to reach 116 mb/d by 2045. Ensuring this funding remains an industry priority to uphold supply security and mitigate future volatility.” He further stressed the importance of mitigating speculative positioning to prevent adverse impacts on the global oil market.
Mr. van Agt Ross of the IEF underscored the ongoing need for rigorous analysis to support the stability of world energy markets amidst rapid global changes, stating, “Though physical and financial energy market linkages are better understood and have become more transparent, they require constant analysis to support the stability of world energy markets in a rapidly changing world.”
Echoing similar sentiments, Mr. Couse of the IEA highlighted the significance of the continued dialogue, stating, “The continuation of this regular event has contributed to a better understanding of price formation in oil markets, and energy markets generally. Today’s workshop demonstrates again the importance of the ongoing dialogue between OPEC, the IEF, and the IEA on subjects of common interest to the three parties.”
This Joint Workshop forms part of the trilateral work program established by the three organizations, endorsed by energy ministers at the 12th International Energy Forum in Cancún, Mexico, in March 2010. Over time, these joint meetings have evolved into unique, high-level technical events, fostering dialogue among diverse market participants to address issues not typically covered in other high-level fora.