EXTRACTS FROM OPEC COMMUNIQUE
Following are extracts from the
communique issued at the conclusion of the OPEC conference
here.
    "The conference expressed satisfaction about the positive
results of the agreement signed in December, 1986, by which
OPEC re-established the system of fixed price at a level of 18
dlrs per barrel supported by OPEC production ceilings
distributed into national production levels.
    "The conference noted that all market indicators, including
spot prices in the market and netback values of all OPEC
crudes, have been firming up significantly, thus consolidating
the OPEC price structure as defined by the agreement."
    "The conference examined the supply/demand outlook for the
second half of the year and decided that in order to secure
continued firm prices in the market, OPEC production during the
fourth quarter of 1987 will be equal to that of the third
quarter, I.E. 16.6 mln barrels per day (bpd), distributed into
the same national production levels as were defined by the
above-mentioned agreement for that quarter."
    "Furthermore, the conference decided to establish a
committee of five heads of delegation to monitor the price
evolution in the market in relation to the OPEC official prices
in order to secure price stability around the opec price
structure.
    "Should there be any significant change in market prices,
the committee would immediately call for an extraordinary
meeting of the conference with a view to deciding on the
necessary OPEC production levels during the second half of the
year, which would secure the desired market stability."
    "The conference reiterated the necessity of member
countries' strict adherence to the agreement signed in December
1986, both in terms of official price, and national production,
levels.
    "For this purpose, the conference decided to establish a
committee of three heads of delegation to undertake visits to
member countries in order to motivate them to comply with the
terms of the agreement."

    "Moreover, the conference stressed the necessity of the
cooperation of the oil-producing exporting countries outside
OPEC as an essential prerequisite for a lasting market
stability.
    The conference, therefore, decided to reinstate the group
of five heads of delegation established by the 77th
(extraordinary) meeting of the conference in April, 1986 to
undertake the necessary contacts with those countries.
    "The conference observed the continued fall in the value of
the U.S. Dollar and agreed that the matter should be studied
and reported to the next meeting of the conference."

    "The conference discussed the appointment of the secretary
general and decided to discuss the matter again in its next
ordinary meeting.
    "The conference extended the term of office of Fadhil
al-Chalabi as deputy secretary general for a period of one year
from October 7, 1987.
    "The next ordinary meeting of the conference will be
convened in Vienna on December 9, 1987."

 REUTER
