European Union finance ministers are warning that high oil prices could threaten economic prosperity and have called on oil producing companies to step up investments to provide sufficient supplies.
Urging greater transparency on oil markets, the EU ministers issued a statement calling on oil producing countries to remove barriers to investment in the sector.
The statement did not make any specific reference to the United States, but ministers meeting in the English city of Manchester earlier said Washington will come under pressure to use energy more efficiently.
"Ministers urge oil producing countries and companies and consumers to recognise their common interest in ensuring sufficient supplies of oil", the statement said.
"They call on oil companies to increase investment in oil exploration, production and refining capacity and alternative energy sources," it added.
Oil giants Total and BP bowed to intense political pressure yesterday and cut petrol prices at the pump in France immediately to help ease the pain of surging fuel and energy bills for households and businesses.
Oil prices, boosted to record highs of nearly $71 per barrel by the damage inflicted on US refineries and oil rigs by hurricane Katrina, eased on yesterday to around $64 per barrel after the International Energy Agency began releasing reserves.
The oil price had dominated two-days of talks by European finance ministers. The statement said the current price "presents risks to growth".
"Ministers are determined that, in today's global economy, and with appropriate policy response, the economic consequences of higher oil prices are likely to be limited."
They welcomed the absence of underlying inflationary pressures but stressed the need to avoid the knock-on effect of higher prices on wage deals, the so-called second round effects.