G8 ministers call for oil price stability

26 May 2009

Crude oil prices must remain stable in order to increase new upstream investment and help facilitate a global economic recovery, world energy leaders have said.

The International Energy Agency warned last week that prices could spike again in the coming years as producers continue to postpone oil projects during the recession.

Group of Eight energy ministers agreed during a meeting in Rome on Sunday that producers must keep prices stable in order to avoid delaying any potential economic recovery.

Italian energy minister Claudio Scajola called for a greater alliance between world governments and the private sector in order to spur investments and reduce the risk of a potential oil price spike in the future.

This is likely to come as good news for home heating oil customers after the IEA warned that values could return to the $147 (£92.70) highs seen last summer if projects continue to be postponed.

Oil prices climbed by more than $5 a barrel last week, with US crude settling up 62 cents at $61.67 a barrel on Friday. London Brent crude rose 85 cents to close at $60.78.

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