"We are concerned that long-lasting high and volatile oil prices could slow down growth and cause instability in the global economy," the draft said.

"To stabilize the oil price at a reasonable level, we agreed to work together and call on the international community to strengthen cooperation to improve production and refining capacities."

The draft communique also urged the world community "to enhance dialogues" between oil suppliers and consumers.

The finance heads from the Group of 20 are meeting this weekend in the scenic spot of Xianghe outside Beijing against the backdrop of dramatic volatility in oil prices.

The G20 brings together the seven biggest industrialized nations — Britain, Canada, France, Germany, Italy, Japan and the United States — with population giants and key developing nations such as China, India and Brazil.

Earlier Saturday, Chinese President Hu Jintao kicked off the gathering with a speech that called for "concerted efforts to stabilize the global energy market."

This would help "forge an environment for the adequate supply and safe, economical and clean use of energy to fuel world economic growth," he told delegates.

Crude-oil futures fell below $63 a barrel in New York Friday, extending their losses amid signs of weak US gasoline demand coupled with reports that more refineries in the US Gulf region were back on line after hurricanes Katrina and Rita.

The amount of oil production shut in by last month’s hurricanes fell to about 1 million barrels a day, or 67.3 percent of total daily output, down slightly from 68.8 percent seen Thursday, the federal Minerals Management Service reported.

There was virtually no improvement in natural gas output, with some 5.65 billion cubic feet a day of output off line, or 56.5 percent of total, the MMS said in a daily update.

The slow pace of recovery contrasted sharply with the rapid progress Gulf Coast refiners have made in restarting hurricane-shuttered units.

At the New York Mercantile Exchange, crude for November delivery ended 45 cents lower at $62.63 a barrel, well off the intraday low of $61.20 a barrel.

November gasoline closed 1.79 cents lower at $1.7400 a gallon, a sharp rebound from an intraday low of $1.65 a gallon.