The price of crude oil closed above $80 a barrel for the first time on Thursday, as a hurricane in Texas raised supply concerns. US light crude hit $80.20, two cents higher than the price it touched on Wednesday. Oil prices have risen 30 per cent since the start of this year and are four times higher than their 2002 level.

The latest figures from the US Energy Information Administration show that global liquid fuels production in August was almost a million barrels per day lower than the same period in 2006.

Lord Oxburgh, one of the most respected names in the energy industry, said a rapid increase in the price of oil was inevitable as demand continued to outstrip supply. He said: “We can probably go on extracting oil from the ground for a very long time, but it is going to get very expensive indeed.”

As reported in The Independent today.

Advertisements