G8, Three Asian Powers Meet After Oil Nears $139 A Barrel

June 8, 2008 8:17 a.m. EST

Aomori, Japan (AHN) - The top delegates from eight leading industrialized nations, along with China, India and South Korea, met in Japan to discuss the ways to curb the rising oil prices, which is affecting global economies, with efficiency and technology.

The meeting between the energy ministers from the Group of Eight (G8) in the northern Japanese city of Aomori followed after black gold rates reached close to $139 a barrel on Friday.

In New York trading, oil soared by almost $11, which is the biggest single-day rise, setting a new record of of $138.54 a barrel.

The rally in energy prices continued during the week, raising warnings for the eleven leading oil consumers as the global economies weaken due to subprime mortgage turmoil in the U.S. markets.

Last week, the oil prices initially increased led by the possibility that there is going to be a rise in demand in Asia as demand in the U.S. was expected to go down prompted by high gasoline rates.

Additional boost to the oil prices came after ECB President Jean-Claude Trichet said in a press conference to explain today's decision that the central bank may raise the main interest rates in July to deal with the untameable inflation.

The United States, Russia, Japan, Germany, France, Italy, Canada, Britain, China, India and South Korea guzzle nearly two-thirds of the world's energy.

Their meeting agenda was dominated by the potential solutions, such as increasing efficiency, sharing technology and promoting alternative power sources, to prevent high oil prices from further damaging the economies.

"We simply must increase the level and breadth of investment all around the world," U.S. Energy Secretary Samuel Bodman, was quoted saying by AP news agency.

He said that meant promoting investments in renewable and alternative forms of energy as well as developing traditional hydrocarbon resources.

Japan's energy minister Akira Amari, who hosted the meeting, put the urgency of doing those things in perspective.

"If we leave this situation as it is, it could lead to a recession of the world economy," Amari was quoted as saying by Agency France Presse.

The focus was also to determine how to diversify their energy sources to both control demand for crude around the globe as well as drastically reduce the emissions of greenhouse gases that cause global warming.

However, the ministers have reportedly disagreed on slashing fuel subsidies, which the U.S. and others agree have assisted boost prices.