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The high-level meeting was chaired by Dr. Ayed S. Al-Qahtani, Director of OPEC\u2019s Research Division, together with IEF Secretary General, HE Joseph McMonigle, and Ms. Toril Bosoni, Head of the IEA\u2019s Oil Industry and Markets Division.<\/p>\n
In pre-recorded welcoming remarks, OPEC Secretary General, HE Haitham Al Ghais, said: \u201cWhat this past year has shown us is the need for the continued monitoring of factors driving volatility in energy-related financial markets, and how it can impact not only the short term, but the medium and long term too.\u201d<\/p>\n
He highlighted that, when required, OPEC Member Countries and their partners within the \u2018Declaration of Cooperation\u2019 have \u201cundertaken extraordinary efforts to stabilize the oil market in these extraordinary times, in the interests of producers, consumers, the oil industry and the wider global economy. This is on the physical side of the oil market. On the financial side, we have been observing an accelerated trend in speculative trading, with investors and other players trading futures and options at faster rates, sometimes severely impacting market liquidity and hindering price discovery mechanisms.\u201d<\/p>\n
In his opening remarks, the IEF Secretary General, HE McMonigle, told the workshop: \u201cBoth financial and physical markets continue to tighten. Rising inflation and underinvestment in physical supplies expose new vulnerabilities. Producers and consumers must have this in mind when engaging risk in investment or to understand the evolution of energy costs for consumers.\u201d<\/p>\n
Ms. Toril Bosoni of the IEA confirmed that volatility remains a risk for energy markets. The last three years have underlined the impact of supply and demand shocks\u00a0as well as of financial markets for energy price movements. The broader consequences concern particularly inflation as well as investment to meet supply and respond to the energy transition. The IEA appreciates the depth and expertise shared by today\u2019s speakers that brought substantial insight to the discussion.<\/p>\n
Discussions during the workshop were structured into three sessions, grouped around the theme \u201cSpot and paper markets: divergent trends amid low liquidity in futures markets.\u201d<\/p>\n
The first session was on the \u2018Factors driving volatility in the energy-related financial markets’. This was followed by a second session which considered the \u2018Impact of\u00a0physical and paper oil interactions on market functioning and price discovery\u2019. The third and final session covered\u00a0\u2018Ensuring adequate financing to sustain oil and gas developments\u2019.<\/p>\n
The Joint Workshop is a part of the trilateral work programme established by the three organizations and endorsed by energy ministers at the 12th International Energy Forum in Canc\u00fan, Mexico, in March 2010. Since then, the joint IEA-IEF-OPEC meetings covering the evolving inter-linkages between physical and financial energy markets have developed into a unique, high-level technical event that bring together a diverse range of market participants to discuss issues that are not addressed in other high-level fora.<\/p>\n
To encourage open and informative discussion, the Joint Meeting was held under the Chatham House Rule.<\/p>\n
At the conclusion of today\u2019s meeting, the three organizers thanked participants for their engaging and frank discussions on such complex and evolving issues, and looked forward to convening the next Joint Workshop in 2024.<\/p>\n<\/p><\/div>\n