• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 27 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 21 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 1 day As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 20 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 1 hour Middle East on brink: Oil tankers attacked off Oman
  • 7 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 24 hours Never Knew Gasoline Prices were this important!
  • 12 hours Plants are Dying
  • 22 hours (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
  • 4 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 18 hours We Are Better Than This
  • 6 hours Emmissions up, renewables nowhere
  • 2 days Britain makes it almost 12 days with NO COAL
Escalating Trade War Signals More Pain For Oil

Escalating Trade War Signals More Pain For Oil

The quick resolution of the…

Middle East Torpedo Attacks Send Oil Prices Soaring

Middle East Torpedo Attacks Send Oil Prices Soaring

Oil prices jumped on Thursday…

Higher Oil Price Pushes UK Inflation To Two-Year High

Fuel Pumps

Inflation in the UK in January rose at the fastest rate since June 2014 on the back of higher oil prices resulting from the OPEC-non-OPEC agreement to cut output. This increase led to higher fuel prices on the local market and was coupled with the depreciation of the pound after Brexit, which, the Bank of England said in its latest report, is now being passed on to consumers.

At the same time, deflationary pressures from food prices have slowed down, supporting near-term projections by the central bank that inflation will continue to rise over the first quarter of this year, first reaching and then likely surpassing the target of 2 percent for the period. Higher crude oil prices will continue to be instrumental in these developments.

The consumer price rise figure for January, as supplied by the Office for National Statistics, was 1.8 percent, versus 1.6 percent in December. Going forward, according to the Bank of England, inflation could reach 2.7 percent within 12 months, as the UK’s exit from the European Union is bound to make imported products costlier.

On the positive side, the upward potential for oil prices has so far proved to be limited, despite optimistic updates coming from the OPEC camp: earlier this month, the IEA praised the cartel for achieving a 90-percent compliance rate just one month into the six-month agreement.

Related: OPEC Reports First Output Deal Results: 890,000 Bpd Cut

Yesterday, the Oil Minister of Kuwait said that non-OPEC producers participating in the cut have achieved a compliance rate of 50 percent. However, markets have failed to react to the news with much enthusiasm, and Brent and WTI kept their distance from the US$60 mark.

It seems it would take hard evidence to prove that the global supply of crude oil is dwindling enough to motivate a higher price for the commodity. With U.S. producers continuing to increase output, however, this evidence is unlikely to emerge in the coming months.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News