EU, OPEC concerned about investments

BRUSSELS, June 24 (UPI) -- The EU and OPEC concluded their sixth meeting in Brussels to consider future trends in the energy sector as the world economy emerges from recession.

Representatives from the European Union and Organization of Petroleum Exporting Countries focused on the impact that the economic contraction was having on their bilateral energy dialogue.

OPEC noted "unprecedented" volatility in energy prices in 2008 coupled with the global financial crisis led to dwindling oil demand, culminating in stock surpluses and a steep price decline.

The oil cartel warned that low oil prices would translate to weak investments in the global energy sector, leading to more market instability.

The EU and OPEC representatives further expressed concern that without greater transparency and adequate regulatory reform, the climate that brought about the 2008 bubble could resurface.

OPEC warned the looming recession and various consumer regulations added to "longstanding uncertainties" about the demand forecast, leading to downward revisions in the energy outlook through 2030.

This, OPEC said in a statement, could have a negative impact on necessary investments.

"Nevertheless, fossil fuels would continue to meet most of the world's energy needs, with oil playing the leading role," the statement read.