(MENAFN- Kuwait News Agency (KUNA)) VIENNA, March 28 (KUNA) -- The third Joint IEA-IEF-OPEC Technical Meeting, held at the OPEC Secretariat here on Thursday, discussed the interactions between physical and financial energy markets.
The one-day meeting was part of the trilateral work programme established by the International Energy Agency (IEA), the International Energy Forum (IEF) and the Organization of the Petroleum Exporting Countries (OPEC) and endorsed by energy ministers at the 12th International Energy Forum in Cancun, Mexico, in March 2010.
In addition to the six Joint Workshops held over the years, the Joint Technical Meeting represents the ninth event in this ongoing dialogue.
The meeting was co-chaired by OPEC Secretary General Mohammad Sanusi Barkindo, IEF Secretary General Dr. Sun Xiansheng and Head of the Oil Industry and Markets Division at the IEA Neil Atkinson, according to a joint statement. In his welcoming remarks, Barkindo said, "The three organizations represented here today are prime examples of the powerful benefits that the strengthening consumer-producer dialogue continue to bring to the global energy markets." The Secretary General said the dynamics and functioning of the oil market continue to evolve on a daily basis, with the increased financialization of the oil market exposing the physical oil market to increased levels of speculative activity and volatility.
He noted that dialogue and cooperation among industry stakeholders is rising to unprecedented levels, as most clearly displayed by the landmark Declaration of Cooperation which has been in place since the beginning of 2017.
"This spirit of openness and the sharing of perspectives and knowledge has been a major supporting factor to the market stability we have witnessed of late," he added.
On his part, Dr. Sun underscored the important role the joint IEA-IEF-OPEC events play in enriching the dialogue between consumers and producers, having just successfully concluded the Ninth IEA-IEF-OPEC Symposium on Energy Outlooks, alongside two meetings in partnership with the European Union and the King Abdullah Petroleum Studies and Research Centre this February in Riyadh.
He further observed that the dialogue on the Interactions between Physical and Financial Energy Markets, was launched after a period of increased oil market volatility, at the 12th IEF Ministerial Meeting in Cancun on 2010. "Just as comparing outlooks has become easier over successive meetings and dialogue is now better informed and more collegial, so too are physical and financial energy market dynamics better understood thanks to the meetings we held over the years." Atkinson said the IEA "is in regular dialogue with our member governments, non-member governments, energy companies, banks, trading companies, and other interested parties to exchange views on a wide range of topics; not least in trying to understand how the enormous weight of investor money is influencing the market and, of course, keeping up with the growing importance of machine learning, algorithmic trading, and many other developments." Discussions during the event focusing on review of interaction of financial markets and oil prices; developments in crude oil futures exchanges and the emergence of new crude oil benchmarks and their impact on regional markets; and climate-related financial disclosures and the impact on global investment in the oil industry. (end) amg.gb
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