France and UK call for end to oil price volatility

7 July 2009

France and Britain have called for global cooperation to help curb recent oil price volatility in order to facilitate a strong economic recovery.

UK prime minister Gordon Brown pledged to talk with the Saudis, Opec and partners within the G8 and G20 to help put an end to "undue speculation" that often causes price swings in the market.

Speaking at the Franco-British summit with French president Nicolas Sarkozy, both leaders agreed that greater transparency and regulation would be necessary to cut oil price volatility in the future.

Mr Sarkozy said: "We must, with the oil producing countries, try and stabilise the oil price in a reasonable range, neither too high nor too low."

He added that current "yo-yo" effects taking prices "from one excess to another" would hinder any potential economic recovery if they were allowed to continue.

The call for action may come as good news for heating oil customers, who have seen crude prices fluctuate widely over the course of the past year.

Values reached nearly $150 (£92.70) in July 2008, before falling to lows of less than $33 by Christmas. Prices currently stand at around $65 a barrel.

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