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London. The world’s largest forum of energy producers and consumers meets in Mexico this week for talks on tackling major industry concerns including oil-price volatility and the outlook for supply and demand.

The International Energy Forum, which groups together energy producing and consuming countries accounting for more than 90 percent of global oil and gas supply, holds its latest biennial conference in the beach resort of Cancun.

The two-day ministerial conference is expected to address oil price volatility at its conclusion on Wednesday.

Crude oil futures endured a roller-coaster ride in the second half of 2008, when they hit record highs of $147 a barrel on supply concerns before tumbling to $32 due to the severe global economic downturn.

Prices have since recovered to trade between $70 and $80 — a range which is pleasing both producers and consumers. However, the risk of volatility remains, owing to an uncertain economic recovery and unrest in major oil producers such as Iran, Iraq and Nigeria.

A total of 64 countries are expected to send ministers to the 12th IEF. They will be joined by the Organization of Petroleum Exporting Countries, who together pump about 40 percent of the world’s crude.

High on the agenda in Cancun will be the issue of energy security. “When consumer countries talk about energy security it’s always about are they going to be supplied with enough energy at affordable prices?” said Noe van Hulst, secretary general of the IEF. “The other side of the coin for producer countries is will there be security of demand for the energy they are producing?”

He said the forum would also be asking whether producers and consumers can have greater convergence over how the use of biofuels and other renewable energy was impacting demand for oil and gas now and in the future.

 

Agence France-Presse