First Prime Group, the Asian-based private wealth manager, is thought to expect members of the G8 summit to quietly manage expectations over its ability to affect the rising price of oil.
Although soaring crude prices are expected to feature heavily in discussion at this week’s talks, privately, several heads of state are believed to see little scope for meaningful action.
Although Nicolas Sarkozy, the French president, repeated a call for oil producers to boost output, José Manuel Barroso, president of the European Commission, said there was not much G8 leaders could do to influence the price of oil in the near term.
Sources close to First Prime Group speculated that any immediate relief could not be realized without involving emerging economies that are rapidly increasing their consumption of oil.
“We will have to put the issue again on the agenda when we meet China, India, Mexico, Brazil and South Africa,” said the German chancellor Angela Merkel.
G8 leaders are expected to broach the subject of the ailing dollar as an alternative approach to stabilizing the oil price but are thought to feel that the Federal Reserve must decide whether to support the US economy at the expense of a strong dollar said the First Prime Group source.
“It is not clear what you would do to change the value of the dollar other than potentially raise interest rates,” said Robert Zoellick, president of the World Bank.
