Oil negotiations result in call for action

23 June 2008

A meeting of leading oil producing nations has concluded with an acknowledgement of the need to take action to curb soaring oil prices.

However, the crisis summit held in Saudi Arabia by oil officials has not resulted in any firm commitment to increasing output.

Negotiations in Jeddah resulted in a statement revealing that oil producers believe that greater investment is needed in order to ensure "adequate" supplies.

Despite the meeting, the price of crude oil rose to over $136 (£69.19) per barrel in early morning trading amid supply concerns following the rebel bombing of a Nigerian oil pipeline.

President of oil producers' cartel Opec Chakib Khelil claims that it is speculation by investors rather than a shortage of available oil that is forcing prices up to record levels.

In spite of a pledge by Saudi Arabia recently to raise output by 200,000 barrels to 9.7 million barrels a day, the cost of oil has continued to climb.

Prime minister Gordon Brown called on oil exporters to raise production during the summit, as did German economy minister Michael Glos.