Tuesday, July 8, 2008

G8: Oil prices pose risk to world economy

TOYAKO, Japan (CNN) -- Leaders of the Group of Eight nations expressed long-term optimism Tuesday about their economies. They also expressed concern over high commodity prices, including the prices of food and oil.

"Elevated commodity prices ... pose a serious challenge to stable growth worldwide," the leaders said in a statement on the second day of their three-day summit.

"We have strong concerns about the sharp rise in oil prices, which poses risks to the global economy."

The leaders called for an increase in oil production and refining, but also said it was important to "improve energy efficiency as well as pursue energy diversification."

They challenged oil-producing nations to boost production capacity to meet rising global demand.

First Published: July 8, 2008: 4:31 AM EDT


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