§ Mr. Skeetasked the Secretary of State for Energy what steps he recommends should be taken to mitigate the effects of Rotterdam spot prices on oil prices generally.
§ Mr. David HowellThe Rotterdam market is a balancing market. Spot prices are not indicative of bulk trade in products. The real answer lies in moderating demand. At the IEA governing board meeting, which I chaired this week, it was confirmed that IEA countries will aim to reduce their demand for oil by 2 million barrels per day towards this end. It was also agreed that the IEA will undertake a study of the impact of the spot market on oil prices generally.