Oil importing countries yesterday reacted with dismay to Saudi Arabia's prediction that oil prices would remain between $40 (€30.20) and $50 a barrel for the rest of this year.
Senior officials from the United States, the European Union and the International Energy Agency (IEA) in Paris expressed surprise at the Saudi forecast and warned that sustained high oil prices could eventually hurt global growth.
Mr John Snow, US treasury secretary, said: "Oil prices are too high. I'm not happy about oil prices one bit." He said it was remarkable that the US economy had shown continued strong growth in spite of rising energy costs.
Mr Claude Mandil, head of the IEA, the industrial countries' energy watchdog, said high prices were a worry for the world economy. "The price now is too high. I think any noise being made about prices staying high for all this year is not helpful."
Mr Peter Mandelson, European Union trade commissioner, warned that the price of crude could undermine confidence in the international economy.
The comments, among the strongest since 2000 when Opec was criticised by importing countries for increasing prices, followed remarks on Thursday by Mr Ali al-Naimi, the Saudi oil minister, that crude prices would be "where the price is today between $40 and $50" throughout 2005.
Oil prices, which hit a four-month high of $51.85 a barrel on Thursday, eased yesterday but remained above $51.
Mr Mandil said high price levels should encourage a response from importing countries. "It is time to be serious about energy efficiency," he said.
He also urged oil companies to invest more in exploration rather than using their cash piles for share buybacks.
Mr Mandelson, who is visiting China, said he was "surprised that this view [ on sustained high oil prices] or wish or prediction" was being expressed now.
"It won't generate confidence in the international economy and the impact of such a price level will be adversely felt, not least by developing country economies."
Opec cut supplies by one million barrels a day in December, pushing oil prices from below $40 to their current levels. The cartel will review its decision at a meeting in Iran, in three weeks.
