Omani Sultan Qaboos bin Said al-Said stressed here late Monday that a mechanism is needed to stabilize oil prices.
Qaboos made the remarks at the opening ceremony of the 29th annual summit of the six-member Gulf Cooperation Council (GCC).
"There is a need to establish a mechanism for stability in oil prices, in a way that it would not burden the consumer ... and not harm the producing countries, while it allows their development plans to continue," the Omani Sultan told the Gulf leaders.
Stressing the importance of stable oil prices, Qaboos said that to maintain a balanced economic development requires the stability of oil prices in the world market.
As oil prices have tumbled to less than 40 U.S. dollars a barrel from a record high of 147 dollars in July, the revenue of oil-rich Gulf countries has shrunk.
The GCC groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, which pumps 16 million barrels of crude oil per day and possesses some 45 percent of the world's proven crude reserves.
Qaboos noted that great accomplishments have been achieved since the establishment of the GCC, which brings security and stability to the Gulf region.
The six Gulf leaders will discuss at the two-day meeting the impact of the global financial crisis on the region and a final roadmap for the bloc's monetary union.
In addition, they will also discuss Israel's intensive strikes on the Gaza Strip in order to reach a vision that could contribute to a common Arab action to stop the Israeli operation, said sources close to Omani officials.
Established in 1981, GCC is a regional political and economic alliance aimed at enhancing cooperation among its six member countries.