Oil To Play Major Role In World Power...

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[With the skyrocketing oil prices heavily weighing on his mind, Prime Minister Manmohan Singh on Wednesday said that the quest for access to oil resources will become a major factor of power play in the world and the Chinese have moved far ahead. &quot;The world is not able to grapple with the crises that it faces... The demand is increasing faster than ever before and the quest for access to the oil resources is going to become another major factor of power play in the world,&quot; he said addressing the IFS probationers in New Delhi. Related Stories Any Emission Targets Need To Include India, China: Bush The Oil Muddle: Full Coverage Singh said the Chinese have been going around the world in Africa, in Latin America, investing, exploring and developing the natural resources for increased oil production. &quot;This tension will increase in the years to come. So the quest for sensitive natural resources, oil security, energy security will emerge as a major source of interplay of forces in the evolving world economy,&quot; the Prime Minister said. Singh said India has to recognise that there would be increasing competition from China and those who were well entrenched in the energy sector. &quot;So, therefore, tensions will be part of the evolving world systems and how we handle our problems, how we project our national interests, will be a crucial determinant of our capacity to be successful in the race for development,&quot; Singh added. Meanwhile, oil jumped more than $3 to top $133 a barrel on Wednesday after oil major BP said the world's proven oil reserves were mostly unchanged last year, a further indication of tightening global oil supplies. Prices also rose ahead of U.S. weekly oil data, which is forecast to show a drop in crude inventories later in the day. U.S. crude leapt $3.29 to $134.60 a barrel and was trading at $133.35 by 1130 GMT. In the past two days, it had fallen by more than $7. London Brent crude was trading $1.73 higher at $132.75. The world's proven oil reserves were essentially flat in 2007 while production fell by 0.2 percent, the first decline since 2002, BP reported on Wednesday, when it launched its 2008 Statistical Review of World Energy. On Tuesday, the International Energy Agency, the energy adviser for the world's industrialised countries, sharply lowered its projection for supply outside the Organization of the Petroleum Exporting Countries. Concern over long-term oil supplies has driven the recent spike in oil prices and prompted Wall Street banks to raise their price forecast to about $150 and $200. &quot;For sure, banks tend to focus on supply. It is easy for them to make assumptions of $200,&quot; Olivier Jakob with Petromatrix said. &quot;On the other side, we have to look at price impact on demand. That's why the market is so volatile.&quot; Oil's six-year rally has accelerated this year, with around a 40 percent increase in prices since the start of 2008. It hit a record high of nearly $140 a barrel last Friday. The U.S. Energy Information Administration (EIA) will release weekly oil stocks data at 1435 GMT on Wednesday. Analysts polled by Reuters forecast a 1.1 million barrel drop in crude inventories, the fourth straight week of draws. Gasoline stocks are forecast to rise 1.2 million barrels, the second straight weekly increase, because production rose and with demand has been hurt by high pump prices. OPEC's Secretary General Abdullah al-Badri appealed on Tuesday that the market should calm down and the group's biggest producer Saudi Arabia said it would host a meeting of oil producers and consumers on June 22 to discuss the high prices. However, the market was sceptical that the messages from OPEC could tame prices. &quot;There seems to be a feeling that a meeting in Saudi and even an increase in production would not halt price rise in oil,&quot; one oil broker said. (Agencies)