The energy ministers from the UK and Saudi Arabia met on April 5 to call for international energy markets to recognise that that high price of oil does not reflect the realities of supply and demand in the market.
Oil prices have remained above US$ 100 since late January and fluctuated over the past month at around US$ 115 following unrest in Libya, despite there being no global shortage of oil.
UK energy minister, Chris Huhne said, ‘With oil prices at more than US$ 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 for 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.
‘Building greater understanding between consumer and producer countries is more important than ever in these present circumstances.’
While in the country, Huhne also discussed the development of renewable energy in Saudi Arabia and the expertise British companies can provide as Saudi Arabia develops its renewable energy sector.