As oil prices began to surge towards a record high for the year an important official from the International Energy Agency (IEA) warned that the world economy cannot sustain any further increases in the price of crude oil.

The benchmark price of $70 should not be breached otherwise a damper would be placed in the path of world economic recovery, the official warned.
Prices for crude oil reached a high for the year on Monday of $73.75, with analysts from the IEA explaining that the increase was spurred by results of improved manufacturing statistics coming out of China and as well as a steady rise in construction starts in the US.

There have been increased fears over recent months that as the economic situation begin to improve in the West and the demand for crude oil begins to increase as a result, the oil producing nations will begin to push their prices up. The results could be that higher energy prices will make a serious impact on the fiscal measures taken by western governments to get their economies out of recession.

French President Nicolas Sarcoxie and Gordon Brown the UK prime minister, have already called for increased scrutiny of the energy markets. In addition the US commodities regulator instituted a series of hearings designed result in increased limits on oil futures trade.

Overall fears that the demand for crude oil in China demand would the most important determinant factor in oil prices, which could set an indeterminate edge to the worldwide supply and demand balance could become very tight if other countries began to grow in 2011 or 2012.

World crude oil prices reached up to $147 in July 2008, but crashed to below $40 by the end of the year. In response to the statements issued by the IEA, leading mark analysts have stated that the tolerable range of oil prices appeared to be somewhere between $70 and $80 a barrel. If prices rise to $90-$100 a barrel even China could be affected.

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Tags: Gordon Brown, Money Markets, Nicolas Sarcoxie, Oil, UK’s oil and gas

A recent report has claimed that the UK public is being overcharged for energy and by more than one and half billion pounds every year.

With the cost of crude oil now less than half of what it was in January of this year, the savings that the energy suppliers must be making in their raw material costs are far away from being reflected in the financially choked British consumer’s gas and electricity bills.

While a large number of consumer protection groups have picked up on this point and begun to pressure the energy suppliers to reduce their bills, the UK government seems to be “sitting on their hands”. With the general feeling that the man in the street continues to be the whipping boy for profit hungry conglomerates, this apparent lack of regard for their plight really sticks in the throat of those who are concerned for the well being of Britain’s sick and elderly. There is no reason why significant reductions cannot be made in utility bills.

Until the UK government does step in, the only defence that the UK consumer has is to shop around and compare prices. If their current energy supplier seems to be overcharging them, no time should be wasted in stating their displeasure, and not waste time and energy by threatening to move on to a new supplier, but beginning to take the necessary steps to do so. Many consumers, who have tried this move, have been surprised to discover that their existing energy supplier will pull something out of the hat to keep their business.

Although it is often easier said than done, the UK consumer could take certain initiatives to reduce the cost of buying energy. The first is by paying promptly, preferably by direct debit, which could amount to saving of around £7.00 a month.

Paying online, especially if you are capable of reading your own meter can save even more. Watch your electric appliances, and switch them off when not in use, even if it is a pain in the neck. If you are finding it difficult to cope financially, and the circumstances allow it, you may even be eligible to certain government grants that will help you to pay your energy bills or better still reduce them through energy saving methods such as improved insulation among others.

All that will help till the UK government starts wielding the big stick at the energy companies. Don’t hold your breath.

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Tags: Energy Company's, Energy Prices, Fuel, Fuel Costs, Fuel Package, UK energy suppliers, UK’s oil and gas

In the erratic financial atmosphere that we are living through, nothing should surprise us anymore. However the news that the UK’s oil and gas production from the North Sea is in jeopardy should be enough to wipe the file from the face of even the most diehard optimist. And why is this about to happen? Because the government has spent all of its money bailing out banks, insurance companies and building societies and had little money left to finance continued exploration. If a major scources of finance does not become available and soon, the unbelievable facts are one of the western worlds most important deposits will not be capable of realizing its total potential. .

Oil discovery experts now claim that the number of exploration wells being drilled in the North Sea has fallen by a staggering 78 per cent in the first quarter of 2009 in comparison to the same period in 2008.

The news that British Telecom is to consider cutting several thousand jobs as part of their cost reduction program for the financial year 2009/2010 continues to hang in the air. The cuts will come in addition to the 10,000 jobs cuts that BT arrived at in their last financial year, and comes in the light of further profit warnings issued by the company.

Another tarnished communications giant, International Business Machines or IBM as we all know and love them have announced that they will also be lying off thousands of staff in locations across the globe, including the UK. The company intends to transfer jobs to Eastern Europe, China, India and South America. Indian employees at IBM reputedly earn about 10 percent of the amount paid to U.S. employees performing similar tasks.

After the long holiday weekend, the FTSE index is expected to open with a rise, on the optimistic news that Goldman Sachs posted a much higher first-quarter profit than expected.

Before the Easter holiday the FTSE100 closed up 1.5 percent (58.19 points at 3,983.71) on Thursday, with the FTSE 250 closing at 6,978.65

At close of trade on Thursday, sterling had risen slightly against the dollar and the Euro and held its price against the Japanese Yen and the Swiss Franc:

Pound/US dollar 1.4867

Pound/Euro 1.1181

Pound/Japanese Yen 148.05

Pound/Swiss Franc 1.6941

Wall Street was open for trade yesterday and enjoyed a mediocre day.

The Dow Jones Average dropped 25.5 to close at 8057.81. Nasdaq did better, even rising 0.77 of a point to 1653.31

It was obvious on trading that the market was looking for some kind of a pick-me-up, with none forthcoming. Investors were unsettled by the news that filing from General Motors were considering filing bankruptcy. All in all Wall Street is facing a crucial week for corporate earnings and economic data, with some of its biggest names scheduled to unveil quarterly results, among them JPMorgan Chase and Citigroup from the banking sector; Intel, Google and Nokia from the hi-tech sector and industrial giants Johnson & Johnson, General Electric and Mattel. The hope is that the tone has been set by Goldman Sachs’ who beat all first-quarter forecasts, in a sign a further sign that the worst may be over for financial firms.

In the meantime AIG confirmed that its financial products unit, whose soured bets on credit default swaps forced the company into government hands last year, has failed to sign up for the overhaul of the global derivatives market which was given added impetus by the troubles at the US insurance group.

Growing optimism in Asia is evidenced by the news that Chinese stocks have climbed to their highest levels for nearly eight months as data showing a record surge in bank lending and money supply last month fuelled hopes of an early economic recovery in the country.

On Monday, the Shanghai Composite index rose 2.8 per cent to 2,513.48

On early trading Tuesday some Asian stocks fell backwards as disappointing profit reports at Qantas and Sumitomo Realty were announced.

The Nikkei was down -1.61% (143.45 points to 8,780.98) whiles the Hang Seng rose by 1.75% (260.37 points to 15,161.78)

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Tags: Bank, Banking, British Economy, Credit Crunch, Finance, Financial News, Fuel, Fuel Costs, Recession, UK Banks, UK Recession, UK’s oil and gas