World energy producers and consumers pledged greater cooperation and called for transparent markets to

RELATED ARTICLES FM wants 3-way oil price sharing

tackle oil price volatility seen as damaging to economic recovery.

"With regard to energy market volatility, energy markets should be as transparent as possible," said a joint declaration issued by the International Energy Forum at the end of a two-day meeting here yesterday.

It also agreed to strengthen dialogue between leading oil producers, such as Saudi Arabia and Russia, and key consumers including the United States and China -- in a bid to eliminate the risk of excessive price volatility.

Oil prices surged to all-time peaks of above 147 dollars a barrel in July 2008, before the severe global economic downturn saw them crashing to just USD 32.

They have steadily recovered, trading in recent months mostly between USD 70 and 80 -- a level deemed acceptable by producers and consumers.

However the price of crude surged close to USD 84 yesterday, hitting the highest level since October 2008 in response to the falling dollar and weaker-than-expected US jobs data, traders said.

In Cancun meanwhile, the ministerial declaration "decided to strengthen consumer-producer dialogue... For reducing the volatility in energy markets," Saudi Arabia's oil minister Ali al-Nuaimi told a press conference.

British junior energy minister Philip Hunt also attending the biennial IEF -- the world's biggest forum for energy ministers -- said "oil price volatility has very negative consequences for the world as a whole".

He added: "We need stable and efficient energy markets. We need them both in terms of ensuring future investment and development.

"But we also need them in helping the globe as a whole recover from the financial problems that we've seen in the last two years. That's why I believe this declaration is so important," said Hunt.

The Organisation of Petroleum Exporting Countries -- whose member nations together pump about 40 per cent of the world's oil -- blames speculators for pushing crude futures to record highs nearly two years ago.

As well as OPEC and non-OPEC producers, the IEF was attended by the International Energy Agency, a body representing consumers as the energy-monitoring arm of the OECD grouping of the world's 30 leading industrialised nations.