A lack of investment is one of the drivers of the current high oil prices. Environmental regulations have made it harder to get permits to build new refineries as well as more expensive while finding big oil reserves is now harder, making development of new finds less cost-effective.

IPE November Brent crude oil futures rose further yesterday to over $43 a barrel.

"There is no additional capacity. But the oil price of recent weeks is being perfectly absorbed by the global economy. We are not seeing a new surge in inflation in a significant way and emerging countries are not having problems facing up to the rise," Rato said.

Rato, a Spaniard who took the helm at the IMF earlier this year, also said producers should use the extra money they are receiving from high prices "in a responsible way" and consuming countries must develop other energy sources.

"For consumers energy policy is a priority of the economic agenda: we must not give incentives to consume and must diversify the types of energy used," he added.

Rato also said he was concerned about the lack of progress in the World Trade Organization's Doha Round of trade talks, which aim to lower trade barriers.

"I am worried ... There has to be a clear realization of what has already been achieved in terms of agriculture subsidies, there has to be a political commitment of developed and developing countries to open borders and markets."

About two months ago the members of the WTO struck a deal to relaunch trade talks and cut billions of dollars of farm subsidies, open industrial markets and boost growth.