Kevin Morrison

Saudi Arabia failed to provide the United States with any new promises or assurances over oil supplies ahead of a key meeting between Crown Prince Abdullah and George W. Bush at the president’s ranch in Crawford, Texas on Monday.

The US Deptartment of Energy raised its outlook for oil prices this year to nearly $50 a barrel. This time last year, it predicted a price of only $29.40 in the forecast for 2005.

The prospect of Chinese and Indian oil companies buying oil and gas-producing assets in the US and Russia is changing the landscape in which the western oil majors operate.

In few industries do statisticians have to behave like spies, but those charged with collecting data on oil supplies have to rely on secret networks of informers in terminals around the world, who monitor tanker timetables and scrutinise shipping movements to report on changes in import and export volumes.

Saudi Arabia, the most powerful member of the Organisation of Petroleum Exporting Countries, said on Wednesday that global oil stocks needed to increase before Opec would have to cut production, a stance that puts it at odds with most of its fellow oil cartel members.

Britain became a net importer of oil in June for the first time in 11 years, official data showed on Tuesday. As the UK is expected to become a net gas importer as early as next year, it is building liquefied natural gas import terminals. The UK also intends to increase renewable share of power generation to 20 per cent by 2020.