London, Dec 19, IRNA, British Prime Minister Gordon Brown warned Friday that despite recent falls, volatile oil prices remain a threat to the global economy.
“It is clear that our most pressing challenge is price volatility,” Brown said. “Wild fluctuations in prices harm nations all around the world.”
Despite the recent rapid fall of by almost three quarters from nearly 120 dollars per barrel, he said there was still a threat of them rising sharply again once the economy recovers and it was in everyone’s interest to have a more stable price.
The prime minister’s comments were made at the opening of a meeting of energy and oil ministers in London, which he called as a follow-up to the Jeddah meeting in June when prices were at record levels.
Amongst those invited to producers-consumers summit were oil ministers from the Organisation of Petroleum Export Countries, including Gholam-Hossein Nozari from Iran who arrived on Thursday.
Brown blamed the high prices of recent years for stoking inflation and holding back growth by forcing governments to keep interest rates much higher than would have otherwise been the case.
He proposed measures to increase the transparency and regulation of international oil markets.
He also urged oil-producing countries in the Persian Gulf nations to invest more in areas such as carbon capture and storage, calling for a “new partnership.”
Hosting the meeting, Energy Secretary Ed Miliband also warned that international action is still needed to prevent future oil price spikes, despite the current collapse in the face of the global recession.
Miliband said that despite the price collapse, it was still important to continue the dialogue between oil producer and consumer nations.
“All of us have an interest in less volatile oil markets that function more effectively,” he said in a statement ahead of the meeting.
“British consumers and businesses have been hurt by the sharp rise in prices which took place earlier in the year. We have a duty to do all we can to prevent such price spikes in the future,” the minister also said.