Saudi increased oil exports as Opec discussed output cuts January 18, 2015 Saudi Arabia’s oil exports rose to a seven-month high in November, the same month that the Organization of the Petroleum Exporting Countries (Opec) decided to keep production levels unchanged in the face of falling oil prices. According to the statistics provider Joint Organisations Data Initiative, Saudi exports rose to 7.3m barrels a day, up from [...]
Opec is dead: The oil war could crown America as the global swing producer January 18, 2015 I well remember suffering through my college macroeconomic class, steeling myself to stay awake through the consumption of gallons of coffee. However, one of the rare things that piqued my interest was the theory of cartels. Properly defined, an efficient cartel possesses three basic properties: the ironclad discipline of its membership; a commanding market position; [...]
Interest rates to remain at historic lows until 2016 amid falling oil price January 18, 2015 The collapsing price of oil could see interest rates remain at their historic lows until 2016, according to top economists. The UK is likely to grow at 2.9 per cent this year, say the EY Item Club in part thanks to lower oil prices. The group hiked their forecast by 0.5 per cent point since [...]
Long-term policies more than falling oil prices are needed for sustainable wage growth business groups tell Cameron January 17, 2015 Long-term solutions rather than the short-term gains from falling oil prices are needed to boost wages, business groups have said. David Cameron urged businesses to pass on the benefits of falling oil prices to staff through higher wages on his visit to Washington yesterday. Business groups have responded saying lower oil prices are already creating [...]
Ed Miliband: Britain “choking on their cornflakes” over Cameron’s pay rise from oil price plea January 17, 2015 Ed Miliband has slammed David Cameron for urging businesses to pass on savings from falling oil prices to staff in the form of higher wages. The Labour leader said the country were “choking on their cornflakes” after hearing Cameron’s plea, speaking at the Fabian Society conference. He accused the Prime Minister of years of “denial, [...]
Cameron tells business to pass on falling oil price benefits to staff through higher wages January 17, 2015 Businesses reaping the rewards of plummeting oil prices have been urged to pass on the savings to staff in the form of higher pay by David Cameron. Asked about the matter on a visit to Washington, the Prime Minister told reporters: "Obviously I want to see companies’ success passed through in terms of wage increases. [...]
BP saves £2.6m after it turns out Gulf of Mexico spill was smaller than thought January 16, 2015 It's not often the UK's oil producers get good news these days, so BP must be doubly pleased with the reprieve it's been issued by a US court, which ruled yesterday that the 2010 Gulf of Mexico oil spill was quite a lot smaller than originally thought. A judge ruled that 3.2 million barrels of [...]
Sir Ian Wood calls for oil tax cuts and warns 40,000 jobs are at risk January 16, 2015 Former chief executive of Wood Group Sir Ian Wood has warned that if the government doesn't cut taxes on the oil industry, the sector could suffer heavy job losses. A leading authority on the oil industry, Wood said the government should cut taxes on the sector by ten per cent to mitigate the threat to [...]
Don’t count on cheap oil and money to stave off a new Eurozone crisis forever January 15, 2015 The Eurozone is in a vulnerable state once again. Five years ago, the euro crisis – that bête noire of the region’s economy – unfolded. Since then, much has been done to repair and strengthen the Eurozone’s architecture, ranging from the establishment of a bailout fund and the creation of a banking union, to European [...]
Government commissions “urgent review” into North Sea oil after BP job cuts January 15, 2015 The fall in oil prices may be good for consumers at the pumps, but the oil industry is suffering. Malcolm Webb, the head of lobby group oil and Gas UK, called for a 50 per cent cut in North Sea taxes after BP announced it would be cutting 300 jobs in Aberdeen, and the energy [...]