Finance leaders from the Group of Seven economic powers are ready to take “all necessary measures” to safeguard energy market stability and limit broader economic spillovers from recent volatility, they said on Monday.
Finance and energy ministers along with central bankers from the G7 - the United States, Canada, Japan, Britain, France, Germany and Italy - held a teleconference to coordinate action as the war in Iran disrupts global energy markets.
OIl prices on Monday were set for a record monthly rise.
“We stand ready to take all necessary measures in close coordination with our partners, including to preserve the stability and security of the energy market,” the G7 said in a statement after the meeting organised by France, which holds the group’s presidency this year.
The International Energy Agency’s 32 members agreed earlier this month to release a record 400 million barrels of oil from strategic stockpiles to combat a spike in global crude prices.
The G7 said it supported efforts to keep energy supplies flowing, and took note of IEA options to manage demand depending on national circumstances. It also called on countries “to refrain from imposing unjustified export restrictions” on oil, gas and related products.
“The likelihood of oil price rises and supply concerns affecting markets and economic growth has increased,” Japanese Finance Minister Satsuki Katayama said.
“As such, we agreed that we cannot let this drag on,” she said.
As economists expect higher energy prices will drive inflation, the statement added that G7 central banks were committed to maintaining price stability and that monetary policy would be based on data.
Source: Reuters
-- Agencies
