G7 piles pressure on Opec

Finance ministers and central bank governors from the G7 nations will intensify pressure on the oil cartel Opec today amid fears that high oil prices pose the biggest short-term risk to global growth.

With dearer crude threatening to hit consumer spending and push up business costs, G7 sources said the meeting would urge oil producers to increase supply and consuming countries to be more energy efficient.

France will say that low taxes in some western countries have encouraged wasteful energy use, but the United States will resist proposals for higher taxes.
Oil prices have surged over the past year as a result of strong demand from the US and China, but European members of the G7 believe speculation has also played a part.

A Treasury source said Gordon Brown expected to find support for his plan for Opec to become more transparent about its stocks and to be more open to inward investment.

America’s record trade deficit – now more than $60bn (