Chinese premier Wen Jiabao on Monday called for a global governance mechanism for energy, under the G20 framework, as an effort to stabilize oil and natural gas markets.

“To reduce the problems and inequality brought by the energy and resources issues, countries in the world should take further action and exert more effort,” said Wen in his keynote speech at the opening of the 5th World Future Energy Summit (WFES).

The proposed mechanism should incorporate suppliers, consumers and transit countries to draft “fair, reasonable and binding” global rules, Wen told the summit.

Factors including global monetary systems, excessive speculation, energy monopoly and geopolitics have worked together to divorce the commodity prices away from market’s “invisible” hands, according to Wen.

“Quite obviously, resolving future energy issues will have to take into account not only economic and technological factors, but political and global factors as well, “Wen said.

His remarks were made as uncertainties in global oil and gas market loom large after Iran warned Gulf states Sunday not to make up for shortfalls in its oil exports under prospective U.S. and European Union sanctions.

Iran, who holds 10 percent of the world’s proven oil reserves, was OPEC’s second largest exporter and China’s third largest oil supplier after Saudi Arabia and Angola.