Japan: The Group of Eight rich nations and China, India and South Korea have said in a joint statement that there was an “urgent need” to boost global oil production after a price spike.
Ministers meeting in Aomori, Japan, said there was an “urgent need for having an increased and timely investment in the energy sector. Investment in domestic production must be maximized and we must also call upon other oil producing countries to increase investment to keep markets well supplied in response to rising world demand,” the joint statement said.
The meeting came after oil prices on 6June posted their highest ever one-day gain of nearly $11, hitting a new record of $138.54 a barrel in New York trade. “We share serious concerns over the current level of oil prices,” the joint statement said.
“We call for enhanced oil market dialogue and cooperation between producers and consumers,” it added. They were however not pinning all the blame on oil producers. “Some factors contributing to the oil market are more structural and longer term in nature, including the growth of global oil demand, particularly in the transportation sector.”
Oil prices have soared five-fold since 2003 due to a variety of factors including turbulence in the Middle East and rising demand in emerging economies such as China and India.