The oil markets lack transparency, according to Gordon Brown, the UK chancellor, who has urged the Organisation of Petroleum Exporting Countries to cut oil prices by raising output. Endorsing Mr Brown's policy initiatives earlier this month, finance ministers of the Group of Seven leading industrialised countries urged oil producers to “provide adequate supplies”.

On both issues, the finance ministers were missing the point. Record oil prices will not be pushed down in the short term by an increase in output, because Opec producers cannot easily tap into spare crude oil production capacity. This crisis was not triggered by a supply crunch. And the oil market has not functioned inefficiently. The market illustrates clearly what is causing the current energy crisis. Demand for oil is growing at a much faster pace than in any decade since the 1960s, which clearly distinguishes this oil crisis and its likely economic impact from the crises of 1973, 1979 and 1990. The previous shocks were all caused by temporary fears of supply disruption. In the past year, the main driver of the price rises has been record increases in Chinese consumption.