Written question asked by Norman Baker (Liberal Democrat) on Monday, 10 October 2005, in the House of Commons. It was due for an answer on Wednesday, 12 October 2005. It was answered by Malcolm Wicks (Labour) on Monday, 17 October 2005 on behalf of the Department of Trade and Industry.

Oil Prices

Question: To ask the Secretary of State for Trade and Industry what forecast has been made of oil barrel prices by the International Energy Agency in each year since 1980; and what the actual price was for each year for which forecasts had been made.

Answer: The IEA does not forecast prices. The IEA publishes forecasts of the fundamentals which could influence the price of a barrel of crude oil, such as the balance of supply and demand. This is as part of its remit to encourage transparent markets to ensure it functions in an efficient and stable manner.However, the IEA does produce medium and long term supply and demand forecasts based on price scenarios, where the balance of supply and demand are examined under different price assumptions. These scenarios take into account the current price, together with the cost of production and prospects for economic growth, but do not represent a price forecast.

Secondary information