Brown: Urging action on oil

The chancellor has urged key finance ministers to tackle the economic problems caused by high oil prices.

At a meeting of G7 finance ministers this weekend, Gordon Brown has put forward a four-point plan to tackle the issue.

He said it was important to ensure that high oil prices do not undermine global growth.

"A global recovery is under way with growth stronger over the past year but it remains uneven and fragile. High and volatile oil prices pose a risk to the outlook, dampening consumer spending and company profitability," said Brown.

"If high prices persist, the consequences could become more serious, denting confidence and pushing up inflationary pressures."

He called on OPEC to take "the necessary action to return oil prices to levels consistent with global economic prosperity".

And there should be reforms to the oil market to make it more transparent and efficient, which would reduce volatility in prices.

More should also be done to expand production capacity and improve energy efficiency, according to the chancellor's proposals.