Japan to urge oil producers, consumers to share market projection+

TOKYO, April 25 Kyodo - Japan will propose that countries share an oil supply-demand projection in an attempt to stabilize energy markets as major oil producers and consumers in Asia and the Middle East are set to meet on Sunday in Tokyo, Japanese officials
said Saturday.

Delegations from 21 countries, which account for 40 percent of the global oil
output and 30 percent of consumption, as well as from some international
organizations, are also expected to discuss measures to ensure energy
efficiency, prevent extreme volatility in oil prices and boost investments in
the energy sector.
''Energy is a strategic commodity. Historically, countries around the world
have been in confrontation over energy issues,'' Japanese Prime Minister Taro
Aso told a dinner session of the participants Saturday evening, adding he is
confident that the meeting will help ''realize the spirit of cooperation.''
Earlier in the day, Japanese Economy, Trade and Industry Minister Toshihiro
Nikai held bilateral talks with some of the participants, confirming Tokyo's
policy of offering cooperation in such areas as promoting business investments,
seeking energy efficiency and developing new energy resources.
Visiting Saudi Arabian Minister of Petroleum and Mineral Resources Ali al-Naimi
thanked Nikai over the increasing number of Japanese firms investing in the
kingdom, while they agreed to keep encouraging cooperation between smaller
manufacturers in each country, the Japanese officials said.
Nikai also met with his counterparts from Thailand, the United Arab Emirates
and Qatar. He is scheduled to meet Iraqi Oil Minister Hussein al-Shahristani
after the conference on Sunday.
The Sunday meeting, co-chaired by Nikai and Qatari Deputy Premier Abdullah
al-Attiyah, will also be joined by representatives from countries including
China and India, as well as from the International Energy Agency, the consuming
countries' energy watchdog, and the Organization of the Petroleum Exporting
Countries, the body that represents oil-producing nations.
The Japanese government says it is necessary to accurately understand the
impact of the current global economic downturn on future oil demand and supply.
In its agenda paper, Tokyo underlines the need to ''share policies that will
affect energy demand, statistics and demand-supply projections.'' The accuracy
of such projections would be improved through ''cooperative work and capacity
building.''
Key crude oil prices surged to around $147 per barrel last summer amid sharp
commodity price hikes. But reflecting weaker demand due to the economic
recession, the prices have shed earlier gains, with oil now trading just below
$50 a barrel.
The global financial crisis has led investments to enhance production capacity
to fall, the government says. But if future recovery of the world economy
induces demand growth again, it might cause a sudden ''supply crunch'' of
energy, it warns, urging adequate and continuous investments.
The meeting will also revolve around the suggestion that regulatory
organizations improve transparency in trading rules on oil markets, while the
countries will discuss other issues such as the sustainable use of fossil fuels
and increased use of new sources of energy.
==Kyodo