30 August 2012, Sweetcrude, NEW YORK – THE Group of Seven nations called on oil-producing countries to increase output and is monitoring the threats to their economies posed by high oil prices, according to a joint statement issued Wednesday by the US Treasury Department.
“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.”
The G-7 said it’s prepared to call upon the International Energy Agency, a 28-member group of oil consuming countries, “to take appropriate action to ensure that the market is fully and timely supplied.” The IEA’s countries made available 60 million barrels of crude and oil products in June 2011 after Libyan output was disrupted by an armed uprising against Muammar Gaddafi.
Oil has advanced 24 per cent since reaching a 2012 low in June as stockpiles fell and the US and Europe tightened sanctions against Iran, limiting the country’s ability to sell its crude. Rising prices have raised speculation that President Barack Obama may release supplies from the Strategic Petroleum Reserve.