OPEC and 13 Asian countries urged greater oversight of oil and other commodity markets to prevent a surge in prices after the global economy recovers from the worst recession since World War II.
Participants in a ministerial energy roundtable in Tokyo sought limits on positions in over-the-counter trades and said “excessive” oil-price movements are “undesirable,” a statement released after yesterday’s meeting said. They also called for “continuous” investments to boost energy supplies.
OEPC unveiled a plan in January seeking regulations to cap speculative trading by investors who buy oil without planning to use it. Oil futures in New York have gained 16 percent this year and are still 65 percent below the record US$147.27 a barrel reached last July.
Qatari Oil Minister Abdullah bin Hamad al-Attiyah and Japanese Trade Minister Toshihiro Nikai co-chaired the one-day roundtable and delegates included Saudi Arabian Oil Minister Ali al-Naimi and International Energy Agency head Nobuo Tanaka.
“We are not yet certain how we will create and control” limits on trading positions, al-Attiyah said at a press conference in Tokyo.
OPEC and Asian governments would need to watch what measures are adopted by the G20, he said.
“We will take actions to avoid any excessive volatility in commodity futures and Japan will look into what measures are appropriate,” Nikai said at the briefing.
He said oil producing and consuming countries must “join forces” to tackle “supply issues” that may emerge after the world economy recovers.
Paris-based IEA said on Saturday falling investments in production may result in a global oil shortage by 2013. Yesterday, ministers at the roundtable said oil-producing and consuming countries must stem a decline in exploration and output.
“The drying up of liquidity to fund projects underpinning economic growth in emerging and developing economies has been a significant consequence of the recession,” Saudi Arabia’s al- Naimi said in the text of a speech at the meeting.
Falling investment “is of great concern, notably for energy-sector projects adversely affected by oil price volatility and lower demand for oil, when long-range commitments of adequate and timely investment flows are needed to ensure future supply,” he said.
The Asian Energy Ministerial Roundtable meeting is held every two years. The group last met in Riyadh, Saudi Arabia, in May 2007.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
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