G-20 vows to be ‘vigilant’ on oil prices, take action as needed

April 20 (Bloomberg) -- The Group of 20 richest nations, which includes four of the world’s five biggest oil producers, vowed to remain “vigilant” about high crude prices and take action if needed to ease price pressures.

“Vigilant of high oil prices, G-20 members stand ready to carry out additional actions as needed and welcome the commitments by producing countries to ensure adequate supply,” G-20 finance ministers and central bankers said in a draft statement to be released after talks in Washington. The statement was obtained by Bloomberg News.

Oil rose as high as $110.55 on March 1, an increase of 47% from October’s low of $74.95, as Iran threatened to close the Strait of Hormuz at the mouth of the Persian Gulf, the transit point for about 20% of globally traded oil.

Oil declined 3.8% last month after the European Union said it would resume talks with Iran over its nuclear program for the first time in 15 months. Saudi Arabia, the world’s largest oil producer and a G-20 member, has pledged to meet global demand.

Futures for May delivery rose $1.57, or 1.5% , to $103.84 a barrel on the New York Mercantile Exchange as of 10:49 a.m.

The G-20 said in the draft statement it will continue to enhance the transparency and functioning of energy markets, in part by improving the database of the Joint Organisations Data Initiative, phase out inefficient fossil fuel subsidies and look at options to mitigate the economic impact of “excessive” commodity prices.

The IMF will report on these policy options at a meeting of G-20 leaders in June, according to the statement.

Bloomberg News

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