He told the New Zealand Petroleum Conference in Auckland that stability was no mere buzzword, but required self-discipline from all producers of this finite resource, not just Opec members.

Before the September 11 terrorist attacks in the United States, world oil consumption growth was expected to be only very modest, from zero to about 300,000 barrels a day.

Failure to control oil prices from dipping too low might shatter the fragile stability of the world oil markets and, ultimately, the world economy.

He would not be drawn on the effects of continued over-production, in excess of agreed production cuts, by such countries as Russia. “Opec should not be expected to shoulder the responsibility of bringing about stability to the market on our own.”

Opec’s actions, supported by other producers, had halted the price slide of late last year and stabilised the market. Nevertheless, we do not think the oil industry is off the hook yet. Demand for oil is expected to be weak in the next few months, putting further pressure on prices, particularly in the second quarter.”

He said if Opec members cut production by five million barrels a day, then other producers had to commit to reductions of at least 10% of that figure.

The long-term challenge, and possible danger, for Opec was that if every country tried to attract investment by giving greater and greater advantages to potential investors.

However, investment was the key to the future of any business, with tens of billions of dollars required in Opec and non-Opec countries over the next few decades to meet the forecast increasing levels of crude oil demand.

“For the oil industry to fulfil its role as the engine of the world economy, all parties must contribute towards ensuring an adequate and steady flow of investment into exploration and technological development. This is easier said than done. The welfare of the industry and the world at large depend on our ability to attain this goal,” Araque concluded.

By Neil Ritchie in Auckland.