Asian ministers urge for oil price stability

Ministers from major oil producers and consumers in Asia and the Middle East called for efforts to stop falling investments in the energy sector while urging enhanced market supervision in order to prevent extreme volatility in oil prices.      

The 21 countries, including Japan, China, India, Kuwait and Saudi Arabia, which account for some 40 per cent of the global oil output and 30 per cent of consumption, also shared the concern that crude oil prices may surge again once the global economy shows signs of recovery from the worst recession since World War II.     

"Participants affirmed that adequate and continuous investment throughout the energy value chain is essential as a means to balancing supply and demand in the future," said the chair's summary released after the Third Asian Ministerial Energy Roundtable held in Tokyo yesterday.      

The one-day meeting came as investment by oil exporters to boost output capacity as well as demand for oil have been shrinking given the global financial turmoil and following economic downturn.      

Japan, a major oil importer and co-chair of the meeting, has warned that if a global economic recovery induces growth in demand, it might cause a sudden "supply crunch" for energy.