On the front page of this morning’s FT:<\/p>\n
The world is facing an oil supply \u201ccrunch\u201d\u009d within five years that will force up prices to record levels and increase the west\u2019s dependence on oil cartel Opec, the industrialised countries\u2019 energy watchdog has warned.<\/p>\n
In its starkest warning yet on the world\u2019s fuel outlook, the International Energy Agency said \u201coil looks extremely tight in five years time\u201d\u009d and there are \u201cprospects of even tighter natural gas markets at the turn of the decade\u201d\u009d.<\/p>\n
The IEA said that supply was falling faster than expected in mature areas, such as the North Sea or Mexico, while projects in new provinces such as the Russian Far East, faced long delays. Meanwhile consumption is accelerating on strong economic growth in emerging countries.<\/p>\n
The problem is exacerbated by the fact that supply from non-members of the Organisation of the Petroleum Exporting Countries will increase at an annual pace of 1 per cent, or less than half the rate of the demand rise.<\/p>\n