UK’s Chris Huhne visits Saudi to address soaring oil prices
Oil prices have reached their highest point in two and a half years. A barrel of Brent crude hit $119.95 this week. Chris Huhne, Energy and Climate Change Secretary is in Saudi Arabia today calling for international markets to recognise that current oil prices do not reflect the realities of supply and demand.
Chris Huhne flies into Saudi Arabia today to address the problems of soaring oil prices, while promoting British expertise in renewable energy.
Brent crude oil rose to $119.95 a barrel on Monday (4 April) - its highest level in two and a half years - whilst US crude rose to $108.74 a barrel. These record highs have been blamed on supply fears in Africa and the Middle East.
In his first visit to the country, Huhne will meet with Saudi Oil Minister Ali Ibrahim Al-Naimi and call on the international energy markets to acknowledge what he calls a disproportion between oil supply and demand and prices.
He said: “With oil prices at more than $115 a barrel there could be no more important time to be in Saudi Arabia, whose response to events in recent months has been crucial in keeping the market supplied to meet global demand.
“There is no shortage of supply, and yet the price has remained high. International energy markets should understand that the current price of oil does not reflect the realities of supply and demand.”
In the UK, the weaker pound means that Brent crude, sourced in the North Sea, has risen to £74.60 a barrel, a record high; really hitting already high living costs, and pushing up petrol costs of 133.46p a litre (140.01p a litre for diesel).
High prices have been triggered by numerous conflicts: the conflict in Libya, where fighting has affected oil production in the country. While Iranian oil producers have refused requests to help lower their supply problems, labour strikes in West Africa have further worsened the situation.
While visiting Saudi Arabia, Huhne will also try to promote the expertise Britain can offer in the renewables sector. Meeting with Dr Hashim Yamani, from the King Abdullah City for Atomic and Renewable Energy he will discuss new clean energy technologies in the country and the help potentially provided by British Companies.
His trip will then continue on to Abu Dhabi, UAE on Wednesday and Thursday for the Clean Energy Ministerial, where he will push for international collaboration on Carbon Capture and Storage.
Huhne said: “Just as we work together to ensure oil market stability, the international community also needs to collaborate to speed up the deployment of clean energy technologies.”
Image: Grangernite | flickr