G-7 Countries call for boosting oil production to curb prices

Finance ministers from the Group of Seven nations are monitoring the risks posed by high oil prices, according to a G-7 joint statement issued on Tuesday by the U.S. Treasury Department.

The G-7 nations called on oil-producing countries to increase output and said they “stand ready to call upon the International Energy Agency to take appropriate action to ensure that the market is fully and timely supplied.”

“We remain vigilant of the risks to the global economy,” the G-7 said. “In this context and mindful of the substantial risks posed by elevated oil prices, we are monitoring the situation in oil markets closely.”

Oil rose for the first time in four days in New York as Hurricane Isaac reduced offshore output in the Gulf of Mexico and on speculation that U.S. supplies fell to a five-month low.

Futures advanced 0.9 percent after the Bureau of Safety and Environmental Enforcement reported that 93 percent of crude production from the Gulf has been shut in as Isaac approaches. U.S. crude stockpiles probably dropped 1.75 million barrels last week, according to a Bloomberg survey before tomorrow’s Energy Department report.

Before the G-7 statement crude oil for October delivery rose 86 cents to settle at $96.33 a barrel on the New York Mercantile Exchange. Prices are up 13 percent from a year ago.

“The current rise in oil prices reflects geopolitical concerns and certain supply disruptions,” the G-7 said.

Source: Bloomberg News