The oil and gas markets are likely to experience a structural shift that will result in these assets becoming more expensive, hedge funds have been told.

The oil and gas markets are likely to experience a structural shift that will result in these assets becoming more expensive, hedge funds have been told.

John Miles, group board director of Arup and spokesman for the UK Industry Task-Force on Peak Oil, has claimed that in the next 30 to 50 years supply will fall behind demand and prices will rise.

Despite this, he said that in the short-term there will be a large variety of different factors impacting on the cost of these assets.

He added: "We are likely to see things going from glut to famine and to glut and famine again in the next three or four years."

Mr Miles highlighted the short-term impacts of the recession and the medium-term impact of a number of new oil wells coming on-stream as key considerations for investors.

Last week, oil prices rose to nearly $81 (£54) in Asia due to the weakening US dollar, which made dollar-based commodities cheaper for investors with other currencies.