Korea will closely cooperate with the international community to fight speculation in crude oil, the prime culprit for the recent surge in the cost of the key commodity, the finance ministry said Sunday.
The move comes as Seoul believes speculative forces as well as demand and supply problems have had a great impact on the jump in international oil prices.
The ministry said Korea will try to drum up international support for crafting regulations on the global derivatives market at a Group of 20 finance ministers' meeting scheduled for Washington on April 19.
International crude prices have been renewing their records due to the confluence of a showdown over Iran's nuclear program, a drop in excess capacity of the Organization of Petroleum Exporting Countries and and increased demand from emerging economies.
A global trend of low interest rates has also prompted hedge funds to flock to the oil market, with the New York Mercantile Exchange posting a 50 percent surge in net purchase positions of crude futures over the last two months, according to the ministry.
The ministry said that as a large oil-importing nation, Korea will make efforts to stabilize international prices.
"Over the short haul, an international clampdown on speculation should be strengthened though the distribution structure of the oil market should be made more transparent in the long term," it said. (Yonhap)