In their communiqué following a meeting here, the G7 finance ministers and central bankers also reiterated the need for producers to enhance refinery capacity and improve energy efficiency.

They also said countries should avoid artificially lowering domestic energy prices through fiscal measures, as they work against the market-based adjustment of energy demand as well as raising gas emissions.

The G7 said it has asked the International Monetary Fund to conduct further research on the real and financial factors behind the recent surge in oil prices and its effects on the global economy.

World oil prices rose above 100 dollars a barrel at the start of the year, but have since dropped on fears that the U.S. economic slowdown will depress global demand.

PIN/Thomson Financial