G8 nations ‘must tackle oil threat’

HIGH oil prices may damage the global economy more in the future than they have done so far, though global economic growth is strong, says a communique to be issued by G8 countries this weekend.

The communique, a draft of which was seen by Reuters, says global economic growth is increasingly broad-based, but high and volatile oil prices, plus widening global imbalances, remain a threat that must be tackled.

The text, which is due be signed off in St Petersburg on Saturday by finance ministers from the US, Canada, Japan, Germany, France, Italy, Britain and Russia, says addressing these risks is a shared responsibility.