Deora calls for regulation to curb crude price volatility

India has suggested a regulatory mechanism to curb speculative tendencies and bring about transparency in the oil market to end volatility in the prices of crude oil.

Speaking at a meeting of oil producers, consumers and major oil firms in London, petroleum minister Murli Deora called for increased cooperation among producing and consuming countries to prevent extreme volatility in oil prices and help guarantee future energy supplies.

"We should collectively put in place appropriate regulatory mechanism to ensure that unhealthy speculative practices are restrained and absolute transparency is brought to crude oil market," Deora said.

British prime minister Gordon Brown also called for action to reduce huge swings in oil prices that he said, caused the downturn of the world economy.

"As with the global financial crisis, this global crisis in our energy markets cannot be solved by one nation or one continent alone,'' Brown said, adding, ''We will need a new partnership between oil-producing and oil-consuming countries."

Deora suggested long-term supply and purchase contracts between buyers and sellers and proposed the setting up of an expert group to make suitable recommendations in that regard.