G7 calls on oil producers to raise output

The G7 industrial countries called Tuesday on oil producers to increase output, saying higher prices posed "substantial risks" to the global economy. Finance ministers of the powerful group also hinted they were ready to push for the release of strategic oil reserves to prevent a tightening of the market. "The current rise in oil prices reflects geopolitical concerns and certain supply disruptions," the Group of Seven finance ministers said in a statement. "We encourage oil-producing countries to increase their output to meet demand, while drawing prudently on excess capacity." "We remain vigilant of the risks to the global economy," the ministers said in the statement, which was released by the US Treasury. "In this context and mindful of the substantial risks posed by elevated oil prices, we are monitoring the situation in oil markets closely." The statement applauded Saudi Arabia's commitment, made at the Group of 20 summit in Los Cabos, Mexico, in June, to mobilize spare capacity when necessary to ensure supplies to the market are adequate. But it also suggested the leading industrial democracies were ready to tap into global strategic oil reserves to keep price pressure down. "We stand ready to call upon the International Energy Agency to take appropriate action to ensure that the market is fully and timely supplied," the statement said. "We remain committed to well-functioning and transparent energy markets."