All the Asia and the Middle East are set to exchange views on what may follow the current global economic turmoil, reflecting their concern that demand for oil and its price could surge again once the world economy shows any sign of recovery.
Key crude oil prices surged to around $147 per barrel last summer amid sharp commodity price hikes. But given weaker demand amid the economic recession, the prices have shed earlier gains, with oil now trading at around $50 a barrel.
Japan, a co-chair of the Third Asian Ministerial Energy Roundtable, says the global financial crisis and following recession have led more oil producers to cut their investments in enhancing output capacity.
It warns that if a future recovery of the world economy induces demand growth again, it might cause a sudden ”supply crunch” of energy, and urges adequate and continuous investments in the energy sector.
The one-day conference in Tokyo is being attended by representatives from countries including China, India, and Saudi Arabia. Qatar holds the chair with Japan.
Also among the participants are the International Energy Agency, the consuming countries’ energy watchdog, as well as the Organization of the Petroleum Exporting Countries, the body that represents oil-producing nations.
Japanese Minister of Economy, Trade and Industry Toshiro Nikai is anticipated to propose that producers and consumers share an oil supply-demand projection in order to stabilize energy markets.
The government of Japan says the accuracy of such projections would be improved through ”cooperative work and capacity building.”
The meeting will also revolve around the suggestion that regulatory organizations improve transparency in trading rules on oil markets, while the participants will discuss other issues such as the sustainable use of fossil fuels and increased use of new sources of energy.
Nikai is planned to hold bilateral talks with Iraqi Oil Minister Hussein al-Shahristani after the meeting on April 26, 2009 in Tokyo.
