G20 says vigilant on oil, ready to take measures

Leaders of the G20 pose for a group photograph at the G20 Summit in Los Cabos June 18, 2012. REUTERS/Edgard Garrido

LOS CABOS, Mexico (Reuters) - The Group of 20 industrialized and developing economies will be vigilant on the movement of oil prices and take additional measures as needed, according to a draft communique at a G20 leaders summit in Mexico.

It said those measures would include producer country commitments to ensure appropriate supply, and the G20 members said they welcomed Saudi Arabia’s readiness to mobilize existing spare capacity as needed.

Brent crude prices earlier on Monday fell to 16-month lows and are now down 25 percent since early March, pressured by the euro-zone debt crisis, slowing economic growth and recent production hikes by Saudi Arabia.

Those declines have eased some concerns about high prices, but the G20 countries, meeting in the Mexican resort of Los Cabos on Monday and Tuesday, said in their draft communique they would remain vigilant on oil and other commodity prices. (Reporting by Stella Dawson; Writing by Kieran Murray)