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Brown and Sarkozy team up to tackle oil price volatility

<div>PRIME Minister Gordon Brown joined French President Nicolas Sarkozy yesterday in an attempt to curtail oil price volatility, as part of a move towards tougher global governance to prevent a return to problems that existed before the financial crisis.<br /><br />Speaking at a Franco-British summit ahead of a meeting of G8 leaders in Italy this week, Sarkozy said the two nations would publish a joint position on the issue of oil price volatility in coming days.<br /><br />&ldquo;We must, with the fossil fuel producing countries, try and stabilise the oil price in a reasonable range, neither too high nor too low,&rdquo; Sarkozy said. &ldquo;The world will not recover from these yo-yo effects that take us from one excess to another. There too, states must try to take a leading role and reintroduce some transparency and regulation,&rdquo; he said.<br /><br />Brown said producer and consumer countries should together study the oil market mechanisms that caused price swings and determine whether there was any &ldquo;undue speculation&rdquo;. If there was, countries should be prepared to take action, he said.<br /><br />Brown added that &ldquo;the writing is on the wall&rdquo; for tax havens and called for a March 2010&nbsp;deadline for the introduction of sanctions against&nbsp;such havens.</div>