Oil prices set to keep climbing

Motorists, householders and businesses are braced for another week of bad news on energy prices as speculators and other investors are expected to pile more bets on a high oil price.

With the benchmark Brent Crude ending the week at its highest levels since August 2008, and a tough stance from the 12-nation Organisation of Petroleum Exporting Countries (Opec), another upward surge is on the cards.

For motorists, this will mean even higher pump prices, while industry is reeling under the impact of soaring energy costs.

The war in Libya and continuing strong demand from around the world have propelled the price upwards. Nor is there any immediate prospect of relief, according to commodities analysts at Commerzbank.

'To calm the protests in the Arab countries, social spending has been increased considerably and Opec members need higher oil prices to increase their oil revenues,' one said.

Brent Crude ended last week at just over $125 a barrel. But despite surging oil prices, the Chancellor is facing a rebellion from North Sea companies against his £2 billion windfall tax.

All 121 North Sea oil and gas operators are being canvassed by industry association Oil & Gas UK on the effects of the Government's unexpected Budget announcement.

 

From The Mail On Sunday

Financial Mail revealed last week that Centrica, owner of British Gas, is working on plans to sidestep George Osborne's tax by moving giant gas exploration rigs into neighbouring Norwegian and Dutch waters.

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