Informed Choice Chartered Financial Planners in Surrey » oil

Libya & oil: a small price for freedom

Martin Bamford — Thu, 24 Feb 2011 09:49:03 +0000

The big finance headline this morning concerns the rising cost of oil due to the continued unrest in Libya and other North African and Middle Eastern nations.

As I type this, the price of Brent Crude Oil Futures stands at $117.74/barrel.

Brent Crude reached a price of $119.79 a barrel in early trade on Thursday before falling back slightly. It has risen from $103.06/barrel since the weekend.

These rising oil prices are largely a consequence of oil companies ceasing production in Libya.

Libya is the 12th largest oil exporter in the world, with most of its oil exports going to Europe.

One implication of a sharply increased oil price is higher petrol prices for drivers. Some commentators this morning are suggesting that oil rising to $150/barrel would result in a litre of unleaded petrol rising to 140p.

Petrol currently costs an average of 128.9p, with diesel at 134.3p.

Of course a high oil price has other financial and economic implications.

Asian and European stock markets have opened down sharply this morning. As I type this, the FTSE 100 index of leading UK company shares stands at 5,887.79, down 35.74 points or -0.60%.

The FTSE 100 has fallen from 6,082.99 since the end of last week – a fall of around 3.2%.

It could take several days or even weeks before the current situation in Libya is resolved, so investors should expect continued volatility in the near term. A well diversified portfolio, with exposure to the full range of different asset classes, will not be fully exposed to loss-making investments as a result of these events.

If oil does rise to $150/barrel in the near-term and consequently pushes up petrol to 140p a litre, hopefully most people would consider this to be a small price to pay for the release of 6.5m people from an oppressive regime.

Photo credit: Flickr/gripso_banana_prune

Market numbers: Friday 8th January 2010

Martin Bamford — Sat, 09 Jan 2010 15:42:14 +0000

The FTSE 100 index of leading UK company shares finished the week at 5,534.24, up 7.52 points or +0.14% on the day and up 121.36 points (+2.24%) over the week (and since the start of the year).

Over a year the FTSE 100 has risen from 4,505.40 (1,028.84 points or 22.84%).

£1 is currently worth $1.60250 US or €1.11160 Euros.

Brent Crude Oil Future is currently priced at $81.55/barrel. Gold is $1,126.75/ounce and Silver is $18.12/ounce.

The UK Bank Rate is 0.5% and CPI inflation was 1.9% for the year to November 2009.

Market numbers: Friday 1st January 2010

Martin Bamford — Fri, 01 Jan 2010 13:56:44 +0000

The FTSE 100 index of leading UK company shares finished the week (and the year!) at 5,412.88, up 15.02 points or +0.28% on the day and up 10.48 points (+0.19%) over the week.

The index has risen from 4,434.20 since the start of 2009, a rise of 978.68 points or 22.07%.

£1 is currently worth $1.617 US or €1.1278 Euros.

Brent Crude Oil Future is currently priced at $78.00/barrel. Gold is $1,104.00/ounce and Silver is $16.99/ounce.

The UK Bank Rate is 0.5% and CPI inflation was 1.9% for the year to November 2009.

Market numbers: Friday 18th December 2009

Martin Bamford — Fri, 18 Dec 2009 17:43:43 +0000

The FTSE 100 index of leading UK company shares finished the week at 5,196.81, down 20.80 points or -0.40% on the day and down 64.76 points (-1.23%) over the week.

The index has risen from 4,434.20 since the start of 2009, a rise of 762.61 points or 17.2%. Over a year the FTSE 100 has risen from 4,330.70 (866.11 points or 20.0%).

£1 is currently worth $1.60770 US or €1.12520 Euros.

Brent Crude Oil Future is currently priced at $73.65/barrel. Gold is $1,104.50/ounce and Silver is $17.31/ounce.

The UK Bank Rate is 0.5% and CPI inflation was 1.9% for the year to November 2009.

Market numbers: Friday 11th December 2009

Martin Bamford — Sat, 12 Dec 2009 10:33:09 +0000

The FTSE 100 index of leading UK company shares finished the week at 5,261.57, up 17.20 points or 0.33% on the day and down 60.79 points (-1.14%) over the week.

The index has risen from 4,434.20 since the start of 2009, a rise of 827.37 points or 18.66%. Over a year the FTSE 100 has risen from 4,388.70 (872.87 points or 19.89%).

£1 is currently worth $1.62520 US or €1.11170 Euros.

Brent Crude Oil Future is currently priced at $71.81/barrel. Gold is $1,124.00/ounce and Silver is $17.51/ounce.

The UK Bank Rate is 0.5% and CPI inflation was 1.5% for the year to October 2009.

Market numbers: Friday 4th December 2009

Martin Bamford — Fri, 04 Dec 2009 17:10:50 +0000

The FTSE 100 index of leading UK company shares finished the week at 5,322.36, up 9.36 points or 0.18% on the day and up 76.63 points (+1.46%) over the week.

The index has risen from 4,434.20 since the start of 2009, a rise of 888.16 points or 20.03%. Over a year the FTSE 100 has risen from 4,163.60 (1,158.76 points or 27.84%).

£1 is currently worth $1.6523 US or €1.1100 Euros.

Brent Crude Oil Future is currently priced at $77.87/barrel. Gold is $1,203.25/ounce and Silver is $19.11/ounce.

The UK Bank Rate is 0.5% and CPI inflation was 1.5% for the year to October 2009.

Market numbers: Friday 27th November 2009

Martin Bamford — Fri, 27 Nov 2009 18:58:42 +0000

The FTSE 100 index of leading UK company shares finished the week at 5,245.73, up 51.60 points or 0.99% on the day and down 5.68 points (-0.11%) over the week.

The index has risen from 4,434.20 since the start of 2009, a rise of 811.53 points or 18.3%. Over a year the FTSE 100 has risen from 4,226.10 (1,019.63 points or 24.13%).

£1 is currently worth $1.6475 US or €1.1014 Euros.

Brent Crude Oil Future is currently priced at $77.10/barrel. Gold is $1,166.50/ounce and Silver is $17.98/ounce.

The UK Bank Rate is 0.5% and CPI inflation was 1.5% for the year to October 2009.