South Korea Asks G20 Nations to Act on High Current Crude Oil Prices

Bahk Jae-wan, the Finance Minister of South Korea has convinced fellow G20 countries to provide a powerful message during their coming meeting in Washington. Their goal is to convey their readiness to act on high current crude oil prices by releasing strategic oil reserves if needed.

According to a government source, Bahk expressed that South Korea will be ready to join a probable group release of strategic reserves, even if it had not yet obtained a request.

In a letter given to the finance ministers of the G20 and governors of its central bank, Bahk said that they could send a powerful message: that they are ready to do everything necessary to obtain commitments from main member nations to release their stockpiled crude oil reserves if needed.

Moreover, Bahk said that the organization could reaffirm earlier pledges made by oil producing nations to ensure sufficient oil supply; at the same time, increasing efforts to avoid speculators in the market should be the G20′s top goal. ¬†Finance ministers of G20 and governors of central bank will convene in Washington on the 19th and 20th of April.

Oil prices have increased with concerns on stock shortages due to output problems in some producers, as well as on sanctions imposed by the West on Iran, the number two biggest oil producer worldwide. Brent current crude oil prices have grown by around 13% this 2012 and were recently trading over $120 per barrel.

During the previous month, Britain, France and the United States had a discussion regarding the probable release of strategic crude oil reserves.

A government source from South Korea expressed that the country is willing to support that action, however, they still need to obtain a request in order to do that.

Ali al-Naimi, the oil minister of Saudi Arabia, recently said that its nation, being the top exporter of oil worldwide, is determined to reduce the economic impact of recent crude oil price history, and is partnering with fellow members of OPEC to do that.