Crude prices have smashed a series of records in recent weeks, as the producers' cartel, OPEC, gambles that oil-consuming countries can withstand a fresh jump in costs. U.S. crude for November delivery touched $90 a barrel on Friday.

At the same time, equity prices on both sides of the Atlantic plunged and the dollar hit new lows against global currencies amid pessimism that the fallout from the U.S. sub-prime crisis will spread well beyond the housing sector.

Gathering in Washington, D.C., on the fringes of the International Monetary Fund's annual meeting, G7 finance ministers issued a statement saying that the fundamentals of the world economy remain strong, but the U.S. housing downturn and high oil prices will hit growth.