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G-8 leaders share PM's concerns on oil prices

G-8 leaders ask oil producing countries to step up output to meet the growing energy demand.
PTI | By V S Chandrasekar, Sapporo
UPDATED ON JUL 08, 2008 04:55 PM IST

Sharing concerns of Prime Minister Manmohan Singh over rising energy prices and the risks they pose to the global economy, G-8 leaders on Tuesday asked oil producing countries to step up output to meet the growing energy demand.

"We have strong concerns about sharp rise in oil prices, which pose risks to global economy... On the supply side, production and refinery capacities should be increased in the short term.

"Efforts are also necessary to expand upstream and downstream investment in the medium term," the draft declaration of the G-8, to be adopted on Wednesday, said.

India's Prime Minister had on Monday lashed out at the international financial institutions and others for their "lethargy" in dealing with the current global crisis fed by oil and food prices.

He mooted a forum where producers and consumers can sit together to work out modalities to introduce a greater element of stability.

Crude oil prices have shot up to over USD 140 a barrel from USD 70 dollars in August 2007. Prices of several items, including wheat, rice, corn, pulses and edible oil have risen between 50 to 100 per cent in the last one year.

The G-8 proposed holding an energy forum to focus on efficiencies and new technologies, which could allow for a dialogue between the producers and the consumers.

The draft declaration said further analysis of the real and financial factors behind the recent surge in oil and commodity prices should be carried out.

However, it welcomed the efforts of the national authorities "to increase transparencies in the commodity futures market and encourage further cooperation between them".

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