Cancun Declaration - a call by Oil producers and consumers

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
predictability 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 recognizes the need to maintain high-level
political engagement. The ministers agreed to convene again by March
2011 in Riyadh to approve the IEF Charter. 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.
The Hindu, Chennai, April 04, 2010