• Crude oil prices had experienced the stronger fluctuation since 2004 and marked the price of 147 dollars per barrel in July 2008. After the peak, it went downwards to the point where the price marked 30 dollars. The price has rather kept stable with the price marking in the region of 40 to 50 dollars since then.
• This analysis was made on the factor and the impacts caused by the fluctuation of the crude oil prices, which made a huge impact on the global economy which includes points as follows:
  
  1. Analysis was made by classifying and dividing two factors that caused the crude oil price fluctuation: the “fundamental factors” and “premium factors” of supply and demand. Especially for the financial market, the analysis was made on the history and the factor of the money inflow and the outflow.
  2. Analysis was made on the impacts on the upstream development, the energy conservation, new energy, and nuclear power generation project, as well as on the impacts on the global economy caused by the fluctuation of the crude oil prices.
• This analysis clearly shows a series of adverse effects caused by the excessive price fluctuation, which shows and implies the direction of future policy in the long-term perspective.

Section 2:
Measures to Cope with Global Warming Issues

• The first commitment period of the Kyoto Protocol started in 2008. A series of domestic and international discussions is fully in progress towards the future agreement on the next framework, which is due at the end of the year.
• To further facilitate the public understanding on the issue of the Global Warming, a series of the international negotiations has been accelerated along with the dissemination of Japan’s efforts and the international efforts.
• Emphasis is put on the importance of Japan’s initiative for international cooperation (such as the sector-by-sector approach). • Ideas of the discussion on drafting the Japan’s medium and long term target were stated and was made clear that these concepts should be based on the scheme of the economically feasible and the “participated by all” concept, which means it should not be drafted based on the baseless declaration.