It’s ‘economic diplomacy’ for RP in oil ministers’ gab

President Arroyo has directed that the strategy of economic diplomacy be utilized to the fullest in the bid to address a looming crisis in the global oil market.

This was disclosed by Energy Secretary Vincent Perez Jr. who said President Arroyo is "hopeful that a sober win-win diplomatic approach to the problem of skyrocketing crude oil prices in the world market could help in the formulation of lasting solutions".

Perez leaves today for the 9th International Energy Forum in Amsterdam which will be attended by the energy ministers of oil-producing countries and those who depend on them for their oil supply. Perez said he had initially begged off from the gab but was instructed by the President to proceed "in order to help convey the urgent appeal of non-oil producing countries to the world’s top oil producers".

Perez said Mrs. Arroyo is openly supporting the growing global clamor for increased oil production since this could help ease international pump prices. President Arroyo’s call backs Saudi Arabia’s proposal that members of the Organization of Petroleum Exporting Countries (OPEC) up their production limits by at least an additional 1.5 million barrels per day.

Perez said Mrs. Arroyo’s economic diplomacy approach focuses on the need for oil-producing countries to support the growth targets of their client nations. He said this could lead to an appreciation by oil-producing countries of the value that robust economic performances by their buyers add to their own economic goals.

Perez said the economic diplomacy strategy will be used when OPEC members convene at a side meeting during the three-day Amsterdam conference. "The collective presence of the energy ministers from OPEC countries provides us with a valuable opportunity to present our call, as well as explain to them the value of their support to the economic aspirations of oil-consuming countries," he explained.

President Arroyo earlier echoed concerns by global leaders that the steady upward climb in crude oil prices could seriously retard the growth of many economies. She also expressed concern that the upward trend could have some inflationary impact. She has directed the National Economic and Development Authority (NEDA) to determine the extent of such impact.