Though they may not openly acknowledge it, the world seems to have stood up and taken note of India's case against speculative trading driving up oil prices with leaders of 66 oil producing and consuming nations calling for more transparent energy markets.
Producers and consumers showed a rare harmony when they at the end of two-day International Energy Forum in Cancun made stability in oil prices their common goal.
"Energy markets should be as transparent as possible to enable their efficient and effective operation and timely and improved market related data should facilitate better understanding of market price behaviour and appropriate regulatory responses," a joint declaration adopted said.
New Delhi has been since 2006 highlighting the role of speculators in oil trade saying paper transactions, which numbered many times actual supplies changing hands, was behind the surge in crude oil prices.
Petroleum minister Murli Deora and the then petroleum secretary M S Srinivasan had faced ridicule at international energy meets where they vociferously raised the issue.
The world acknowledged the role of speculators only in 2008 when oil prices fell from record high of $147.27 a barrel in July to $32.40 per barrel in December of that year. Since then, the Organisation of Petroleum Exporting Countries has taken up the cause of seeking curbs on speculators while the US has moved to curb speculative paper trades.
The 12th edition of biannual conference recognised the need of regulating the markets but stopped short of prescribing any measure.
"The issue of adequately regulating financial markets in general, and commodity markets in particular, has recently gained prominence. . .
"While markets are increasingly global, regulations remain country-specific and vary among jurisdictions," the declaration said.
Deora said India had in Jeddah and London meetings of IEF in 2008 forcefully raised the issue and now 'they are addressing the issue of price volatility.'
"More collaborative effort on part of producers and consumers has been stressed," oil secretary S Sundareshan said.
They now have a 'common goal of not having extreme volatility in prices.'
The recent economic uncertainty has underscored the communal nature of modern energy markets, increased awareness of the social and economic costs of climate change and highlighted the importance of international cooperation on both energy and climate, the joint declaration said.
"Today's energy issues cannot be resolved unilaterally; they demand committed international cooperation and a willingness to engage in frank and open dialogue."
After a period of extraordinary turbulence in energy and financial markets, a global recovery has begun to gain purchase and energy demand growth is returning in a number of key regions.
The Cancun Declaration called for enhanced energy dialogue and outlines the path for a stronger institution.
The IEF resolved to narrow the differences among producing and consuming countries, both developed and developing and work together to promote transparency of data, stability of markets and predictability of energy policy.
They also voed to identify principles and guidelines to enhance energy market stability and sustainability.
They agreed to share analysis on present and future market trends, links between physical markets, financial markets and regulation, and enhancing transparency even further through collecting data on natural gas and annual investment plans on energy production.
Image: A petrol pump
