Oil prices 'will rise until 2013'

7 July 2008

The price of oil looks set to continue to rise for another five years, according to the International Energy Agency (IEA).

Despite an increase in supply easing the situation in 2009 and 2010, the head of the IEA has told German newspaper Handelsblatt that demand will increase.

Reuters quoted Nobuo Tanaka as saying: "The market situation will certainly remain tight until 2013."

The news agency reports the interview includes a call for governments to resist the urge to reduce taxes, as well as the ending of developing countries' practice of keeping prices artificially low.

Mr Tanaka also encouraged increased investment by oil producers and the introduction of energy saving techniques by consumers.

Recently the cost of a barrel of crude oil neared the £146 (£74.15) mark, as lorry drivers from around the country converged on London to protest over rising fuel prices.

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