Leaders of the Group of Eight industrialised nations will say this week that oil price volatility is a danger to already-slowing world economic growth, according to a draft text of their final economic statement.
In the text, dated June 28th, the G8 leaders also urge oil producers and companies to ensure enough investment in future oil supplies and refining capacity. Oil prices hit an all-time high of $60.95 last week.
The text suggested the G8 was concerned more by the potential drag on growth of high oil prices than their inflationary impact.
"We agreed that secure, reliable and affordable energy sources are fundamental to economic stability and development," said the text, a copy of which was shown to Reuters.
The G8 leaders, who will meet from July 6 thto 8th in Scotland, said persistent global imbalances and high oil prices would pose challenges to the world economy, which would remain robust in 2005 but grow at a slower rate than in 2004.
The world economy grew 5.1 per cent last year, its fastest rate in three decades, but is predicted to slow to closer to 4 per cent this year, according to the International Monetary Fund.