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PM calls for oil price stability | |
(about 2 hours later) | |
Gordon Brown has said oil-rich Gulf states must play their part in stabilising world oil prices. | |
Speaking ahead of a four-day tour of the region, the prime minister also said they should help countries hit by the global economic crisis. | |
"Their interest is in a stable energy price, not in the massive volatility we have seen where oil prices have shot up and then come down again", he said. | |
"Their interest too is in a well-functioning global economy," he added. | |
'Begging bowl' | |
Mr Brown is expected to stress the nations must maintain their oil production levels to avoid "spikes" in oil prices. | |
Everybody has got a part to play in solving this world downturn and I think the oil-rich states will want to play their part Gordon Brown | |
Before his departure, he denied he would be going with a "begging bowl" and said the trip would aid British families. | |
"My main focus is how we can help British families through this downturn, but because these are global problems they require global solutions. | |
"The Saudis and other countries in the Gulf states are very important. | |
"They are the countries with oil revenues; they are the countries that need to help." | |
Mr Brown said restoring stability around the world would benefit the wealthy oil-producing countries. | |
"Everybody has got a part to play in solving this world downturn and I think the oil-rich states will want to play their part," he said. | |
Gordon Brown was accompanied by Ed Miliband on the flight | |
He said his plan was for a "greater co-ordination" of policies and hoped the talks would result in the countries working together to deal with a variety of situations. | |
He said the issues included tackling problems preventing banks from lending money, making progress on world trade and reforming the world's financial system. | |
"Now if we can do these things we restore confidence into the banking system and into the whole financial system. | |
"So what starts with negotiations in Saudi Arabia and elsewhere can end with far greater security and safety for families and businesses in Britain." | |
His visit comes amid concerns the International Monetary Fund's $250bn (£155bn) reserves may not be enough for future bailouts of struggling states. | |
The fund has already allocated around $30bn (£18.6bn) in emergency loans to Iceland, Hungary and Ukraine, and Pakistan has signalled it may apply for aid within the next fortnight. | The fund has already allocated around $30bn (£18.6bn) in emergency loans to Iceland, Hungary and Ukraine, and Pakistan has signalled it may apply for aid within the next fortnight. |
In contrast, members of the oil producers' cartel Opec, are estimated to have more than $500bn (£311bn) in foreign exchange reserves. | In contrast, members of the oil producers' cartel Opec, are estimated to have more than $500bn (£311bn) in foreign exchange reserves. |
The growing importance of Middle East capital was highlighted on Friday when it emerged British bank Barclays raised £7.3bn from investors in the region to shore up its position. | The growing importance of Middle East capital was highlighted on Friday when it emerged British bank Barclays raised £7.3bn from investors in the region to shore up its position. |
'Significant wealth' | 'Significant wealth' |
Mr Brown flew to the Middle East with energy and climate change secretary Ed Miliband. | Mr Brown flew to the Middle East with energy and climate change secretary Ed Miliband. |
Business secretary Lord Mandelson and a delegation of senior executives from British firms are expected to join the pair later. | Business secretary Lord Mandelson and a delegation of senior executives from British firms are expected to join the pair later. |
A Downing Street spokesman said the prime minister was also expected to urge the Gulf states to invest in renewable energy sources "over the longer term". | A Downing Street spokesman said the prime minister was also expected to urge the Gulf states to invest in renewable energy sources "over the longer term". |
But he denied the West was going "cap-in-hand" to the Middle East in a bid to shore up the IMF reserves. | But he denied the West was going "cap-in-hand" to the Middle East in a bid to shore up the IMF reserves. |
"It's recognising that it's in everyone's interests that there is stability and growth in the markets and that's equally in the interests of states in the Gulf region," he said. | "It's recognising that it's in everyone's interests that there is stability and growth in the markets and that's equally in the interests of states in the Gulf region," he said. |
"The Gulf states are in a position as states with significant wealth, significant resources that they can contribute to the refinancing and stability of the financial system." | "The Gulf states are in a position as states with significant wealth, significant resources that they can contribute to the refinancing and stability of the financial system." |
The visit is understood to be part of the preparations for a summit on forging new international financial rules, to be held in the US on 15 November. | The visit is understood to be part of the preparations for a summit on forging new international financial rules, to be held in the US on 15 November. |