Oil supplies are likely to tighten over the next five years, meaning that British homeowners could face rising energy bills, analysts have warned.

A report by the International Energy Agency (IEA) has predicted that oil supplies will reach minimal levels by 2012, spelling higher petrol prices and a surge in household energy bills.

Although the UK currently generates more electricity from gas than oil, similar problems are likely to be experienced in the gas industry.

The report claimed: "Not only does oil look extremely tight in five years' time, but this coincides with the prospects of even tighter natural gas markets at the turn of the decade."

Oil and gas analyst Peter Hitchens, from stockbroker Teather & Greenwood, told the Birmingham Post: "The cheap oil that is easy to get hold of has been used up.

"The US and UK industries have been in decline, while the growth rates in up-and-coming areas like Russia and north Africa are also now slowing."

Mr Hitchens said that oil prices would not fall and that consumers would have to "get used to higher ones".

Consumers can help to reduce their energy bills by installing double glazing and other forms of home insulation.

Click here for a selection of double glazed windows and doors from Safestyle.

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Author:  Joanne McCabe

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