Oil producers and consumers call for transparent markets

The Cancun Declaration aims at checking price volatility

The 65-member strong International Energy Forum (IEF) on Wednesday came out with a landmark “Cancun Declaration'' that, for the first time, aims at promoting transparency of data, stability of markets and precditability of energy policy with the aim for enhanced global producer-consumer energy dialogue to be in place latest by March 2011.

The historic declaration came at the end of the two-day 12th IEF Ministerial meet here. India, which has been a strong proponent of ending speculation in oil trade, termed it as a vindication of its stand. The world has taken cognizance of India's concern on speculation in oil trading, Petroleum and Natural Gas Minister Murli Deora told visiting Indian journalists here.

The declaration called for “transparent markets in a bid to tackle oil price volatility. '' With regard to energy market volatility, energy markets should be as transparent as possible, the declaration said. It also a greed to strengthen dialogue between leading producers, such as Saudi Arabia and Russia, and key consumers including the U.S. and China — in a bid to eliminate the risk of excessive price volatility.

Noting the importance of strengthening the consumer-producer dialogue, the Cancun Declaration recognises the need to maintain high-level political engagement. The ministers agreed to convene again by March 2011 in Riyadh to approve the IEF Charter.

Economic uncertainty

The declaration said the recent economic uncertainty had underscored the communal nature of modern energy markets, increased awareness of the social and economic costs of climate change and highlighted the importance of international cooperation on energy and climate.

Today's energy issues cannot be resolved unilaterally and demand committed international cooperation and a willingness to engage in frank and open dialogue. The IEF is the ideal forum for this type of cooperation and communication. But dialogue and cooperation can only be effective if those that participate are committed and earnest in their engagement, it said.

The Cancun Declaration outlines the path for a stronger institution.