Written question asked by Stephen O'Brien (Conservative) on Wednesday, 26 March 2003, in the House of Commons. It was due for an answer on Tuesday, 1 April 2003. It was answered by Brian Wilson (Labour) on Tuesday, 1 April 2003 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the Secretary of State for Trade and Industry, what assessment his Department has made of the effects of (a) a conflict with Iraq, (b) problems in the Venezuelan economy and (c) problems in Nigeria on world oil prices. - Includes figure.

Answer: Mr. Stephen O'Brien: To ask the Secretary of State for Trade and Industry what assessment his Department has made of the effects of (a) a conflict with Iraq, (b) problems in the Venezuelan economy and (c) problems in Nigeria on world oil prices. [105678] Mr. Wilson: From mid-November 2002 to mid- March 2003 oil prices (Brent) rose by around $10 per barrel to over $33 per barrel due to a range of factors, including: a significant disruption to supplies from Venezuela; low levels of OECD commercial oil stocks, particularly in the United States and Asia-Pacific; very cold weather in the Northern Hemisphere, particularly the United States; and market uncertainty about international developments regarding Iraq. Despite the loss of oil supplies from Iraq and a disruption to supplies from Nigeria, a combination of increased supply from producers (including a recovery in Venezuelan production), a seasonal fall in world oil demand, and reduced market uncertainty about developments regarding Iraq has seen oil prices fall to around $25 to $27 per barrel in late March.

Secondary information

Type: Written question
Reference: 105678; 402 c624W
Session: 2002-03
Subjects: Armed conflict Iraq Economic situation Oil Prices Nigeria Iraq conflict Venezuela
Contains statistics: Yes
Link: View this Written question on www.publications.parliament.uk