Oil falls after the earthquake, in the Japan the Saudi crackdown

The Saudi police form a point of control, inspection of the cars near the site where a demonstration should be held in the capital Riyadh Sauid Friday. Photo: AP

Brent crude in London fell $ 3 to $112.39 at noon while in New York oil crude withdraw less than $100 a barrel as traders bet that a huge earthquake in the Japan would reduce imports of crude oil in the country.

"Demand for oil [at Japan] could be lower, at least temporarily, because of the earthquake," said Commerzbank analyst Carsten Fritsch.

"After China and the United States, Japan is third largest consumer of commodities in the world and is dependent on imports for almost all products."

The largest earthquake to hit the Japan since the beginning of the records 140 years ago struck the northeast coast, triggering a 30-foot high tsunami that swept away everything in its path, including homesboats, cars and farm buildings.

Future crude also fell as Saudi Arabia launched a security operation mass in a show threatening force to deter the demonstrators of a planned "Day of Rage" to insist that the democratic reforms in the largest exporter of oil in the world.

Illegal demonstrations were to start after Muslim Friday prayers at noon, but as the mosques emptied were there no sign of gatherings, with men of security staffing positions of control in key locations in several cities.

OPEC Friday warned that prices could curb demand later this year, as oil cartel only slightly improved its estimate of growth in world demand for 2011.

The Organization of petroleum exporting countries said that it was raturés in the growth of global oil demand of 1.44 m barrels per day (BPD), or 1. 67pc to 87,83 m barrels this year. That represents only a revision to the marginal increase of 1. 62pc.

Gold was on track for its biggest weekly decline since early January, down $30 since hitting a lifetime of high $1,444.40 an ounce troy Monday. Spot or a $units an ounce in London in early afternoon trade.

"Gold is trading oil offshore, but helps the earthquakes and the tensions in the Middle East to the Japan, said Andrey Kryuchenkov, an analyst at the Capital of VTB." Markets are also nervous with a day of rage in Saudi Arabia. »

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Oil could hit $220 per barrel on the fear of the Libya and Algeria, cautions Nomura

Barclays Capital said 1 m barrels of Libyan output is "locked in", with the other 0.6 m at risk. While Saudi Arabia may respond by raising the output, it takes time and its oil is not a substitute for "Sweet Crude the Libya".

The crisis escalating triggered falls more on the global stock exchanges. Wall Street was down 1pc in trade at the beginning and the FTSE 100 1. 2pc. The Dow Jones index has shed more than 300 points during the three days of 12,075.

Nomura said a closure in Libya and Algeria would reduce global 2.9 m b/d supply and reduce the ability of spare OPEC b/2.1 m d, comparable to levels at the beginning of the Gulf war and worse than during the 2008 spike when prices hit $147.

Two price shocks preceded by - or triggered - a recession in Europe and the United States. Fatih Birol, Chief Economist, International Energy Agency said the last rising already become prices a "serious risk" for the fragile economies of OECD block.

Some analysts fear the underlying image is worse than officially recognized doubting Saudi claims of alternative ample capacity. Wikileaks cable cited comments by geologist of Saudi Aramco oil giant that Kingdom reserves had been exaggerated by 40pc. A second cable cited U.S. diplomats asking if the Saudis "more empowered to make prices downwards for an extended period."

Report from Nomura, who consider the scenario catastrophic to a real crisis in the Gulf, said recent oil price shocks have shown a pattern of three floors, with a final blow-off price in the final phase. The current crisis is the first step.

Soaring oil prices create a dilemma for banks, nasty because they inflationary if caused by the robust global growth, but the deflationist if caused by a tightening of supply which acts as a tax on consumption of nations. Big oil exporters tend to save additional revenues for first price spikes, so the initial effect is draining global demand.

The current image contains elements of both, with an extra touch of liquidity created by the US Federal Reserve leaking into the global system and play havoc with commodity prices.

Secretary of the Treasury Tim Geithner told us Wednesday that the global economy is relatively stong to "manage" the oil shock, insisting on the fact that central banks "have extensive experience in the management of these things."

The European Central Bank (ECB) responded to skyrocketing oil in July 2008 by raising rates even if the Germany and the Italy were in recession at that time there. Nout Wellink, the Governor of Dutch of the ECB, said that this was an error policy.

Circumstances are different this time still also dark. ECB chief Jean-Claude Trichet scored last month that the Bank will be "look at" the hump of prices in the short term, but the ECB rhetoric has since then harden. Fed doves will probably give more weight to the deflationary risks.

Jeremy Leggett, a leader of the task force industry UK peak oil and energy security, says the crisis Mid-East "shows the extreme fragility of the world system." People don't realize the proximity we a potential jump if that agitation reached critical mass in OPEC countries enough. "Governments must develop contingency plans and get cracking on proactive steps while we still have time", he says.

Charles Robertson in the Capital of the Renaissance, said concern actual harass investors is what happens in oil-rich Province Saudi Arabia Eastern home of Kingdom restless minority Shi'ite. The Saudis produced with FP6 11 of world production, but a more significant share of exports.

It does y potential serious tensions and not only among the Shiites. High unemployment and the youth bulge means disorders could be anywhere in the country. If Saudi Arabia or Iran is gobbled up, we have a serious problem. »

On Wednesday, the Saudi King Abdullah has unveiled $restriction of social aid for his people.

Energy & Utilities and positions vacant Oil & Gas jobs Telegraph

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Oil falls to $113 OPEC, deals with the output

Sheikh Ahmad al-Abdallah al-Sabah, Minister of oil to the Kuwait, was declared to journalists that OPEC was "consultations on a possible increase in output", but said no there was no decision for the group to produce still on quotas.

However, the Organization has differences on the increase in supply. The Iran, which holds the rotating Presidency of OPEC, saying: no there was no need a boost in production as consumer concerns over supply were "psychological".

An increase in the official release by OPEC would signal the willingness of the group to put a cap on the price and keep the global economic recovery on track.

Oil doped high to two and a half years, last month after the revolutions in Tunisia and the Egypt and the Morocco to Oman protests. A mixing of the civil war in Libya has left many two-thirds of the country's oil production, or 1 m barrels per day (BPD),.

Saudi Arabia, the world largest oil exporter and home to most of the spare capacity held by the Organization of the country, oil exporters is pumping about 9 m barrels per day, about 1 m bpd above its quota.

US crude, which closed above $105 on Monday - the highest since September 2008 - increased to $1,2,5,8 Tuesday after the slide previous 1.29 $ $104,15.

However, who had been hunted $ 1,440 per ounce at one point yesterday in a flight to safety, also rebounded to $1,434.42 in London after falling to $1,428 in trade at the beginning.

Nerves on the Libya returned when Colonel Gaddafi sent combat aircraft to strike rebel forces behind the Eastern war front lines as he rode his offensive counter.

High oil prices pose a threat to the fragile economies, including Britain. "With fiscal tightening and food, the price of oil prices are a real threat to the United Kingdom" said Julian Jessop, Economist at capital economics.

The Council expects this country around a recession yet, but predicted just 1. 5pc growth this year and next.

Rising petroleum costs have put the British Government under pressure to increase in the duty of the scrap fuel and Chancellor abandoned its wider tip that there could be a help for drivers in the Budget.

"I'm looking, of course, the fuel duty," he said yesterday. "I see what I can do to help."

In United States, the White House is considering tapping the country strategic oil reserves if prices continue North. "We are looking at options." The question of reservations is one before us, said William Daly, Chief of staff of the President Barack Obama.

Last America operated its reserves, which hold about 727 m barrels per day, Hurricane Katrina in 2005. Analysts at Deutsche Bank reduce oil. Price of gasoline is close to a maximum of two years of $3.81 per gallon, according to AAA, an organization of U.S. automobile.

A version co-ordinated by the OECD economies strategic oil stocks is not necessary yet because that the interruption of oil supplies caused by the uprising of remains of Libya limited worldwide, the International Energy Agency (IEA) said Monday.

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Martin Wheatley - will be Hong Kong loss be gain of London?

Wheatley is clearly a praiseworthy choice, given his current role as financial Hong Kong man running watchdog and his previous role as Deputy Chief Executive of the London Stock Exchange in the Dame Clara Furse, just sit on the small panel offer a choice of George Osborne.

But if everything seems too good to be true, it might just be. My sources tell me that during their time together, the pair was not quite what one might call friends, and Dame Clara that work with him a little difficult. While it is really only favourable to its appointment?

It seems also that his time in the old colony British – he has been there for six years and I will withdraw spring – is far from a walk in the Park.

Reports at the time wherever he announced his departure from the regulator of Hong Kong underscored the fact that people were therefore not satisfied with his work to deficit Lehman mini-liaisons that they burned her image outside of Office Agency regulatory and blasted music funeral Chinese outside.

Loss of Hong Kong will perhaps gain London after all?

You can contact James Quinn on the opinions expressed in this column, email him at mailto:james.quinn@telegraph.co.u

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Markets rise on hopes for agreement to bail out the Greek

Germany, with an electorate angry on the nation to bail, juicy contributions previously suggested that Greece could restructure its debt.

The Germany was on Tuesday, said to consider to waive its claim that additional help must be provided that the holders of bonds of the Greek Government soon share some pain via a debt restructuring.

If so it would pave the way for "The Greece troika" creditors - the European Union, the Monetary Fund International and the European Central Bank - to agree more help for the responsible countries of debt after €110bn year last package (£ 96bn).

Developments have cheered investors, although reports have suggested that a restructuring of the debt was still on the table in the long term.

The FTSE 100 index of blue chip of Britain, increased points 51 12-0. 86pc - 5,989.99 while the euro rose above $1.44 to its highest level in three weeks.

Germany, with an electorate angry on the juicy contributions of the nation to bail, already suggested that the Greece could restructure its debt, perhaps by extending the terms of its loans. However, the ECB is vehemently to even this restructuring "soft".

The absence of agreement was worried markets, particularly as the IMF will not release its share of the last tranche of aid billion € because of the Greece unless that funding the nation's long term seems well established.

Fitch rating agency yesterday cut rating credit of Cyprus by three notches, citing the effects of the crisis of debt in nearby Greece.

Separately, a report of Ernst & Young estimates that Ireland, another beneficiary bail, emerge not recession until 2012, and that its debt holders may suffer losses.

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Medtronic Smith & Nephew's new name

However, Mr. Gordon said: "we now see increasing barriers to sustainable outperformance. "These barriers include loss reported in the second half of 2010, exceeding the Bank Commission independent, mixed UK growth, falling prices of real estate, continues financing and regulatory uncertainties, PPI claims, base rate LIBOR spread expansion set and the effect of"glass ceiling"of 40 FP6 from the British Government".

The analyst concluded that Lloyds remains first and foremost, "just a story cost and disability". Accordingly, Lloyds lose 1½ to 68.1%.

Mr. Gordon prefers Royal Bank of Scotland, decrease of 0.4 to 42.2 percent and Barclays, which gave up 4.4 percent 306.6

Elsewhere in the sector, HSBC has lost 703½p despite RBS "buy" upgrade 6.2 Says RBS analysts: "financial delivery of HSBC in the United States and Asia should improve that retrieves the growth the country economic and policy rate increases." He also enjoys the deterioration in the relative cost of funding for many European competitors. Strategic issues remain, but should not prevent a re-rating of fairness.

Autonomy took the wooden spoon after a Standard & Poor (S & P) downgrade to "hold". S & P said that he saw always the prospect of an acquisition as a positive catalyst probably this year. However, the absence of a positive pre-announcement by autonomy so far, the results of the fourth quarter of 2010 may be consistent or even just below consensus. As a result, the market will be be left disappointed. P £ 14.65 78 dragged autonomy.

GlaxoSmithKline tempered p 20-£ 12.05 after it said it will record a charge of £ 2 for the fourth quarter, MD effectively eliminating profits, as he settled some debts for Avandia diabetes drug-related and sales practices.

Mining stocks were generally disgrace as metals prices headed southward. Kazakhmys has waived 24 p to £ 16,16 while Xstrata declined 18½p to £ 14.76.

Among precious metals mining companies, African Barrick Gold cast a 10½-564 p despite Morgan Stanley increases its price target to 750 p a share. Broker has enhanced its price gold long term forecasts by 21pc $ 750 an ounce to $905 an ounce. In the doldrums, Fresnillo lost also 53% to £ 14.39.

The London Stock Exchange (LSE) slipped 1 at 880½p. Although Citigroup downgraded to "sell" shares, the broker has raised its price target to 810 p. "We believe that current assessment fully reflects the strategic progress that LSE has to this day and its potential for future growth," said analysts to the broker.

More positive tack, Vodafone has received a boost by Nomura raising his price target to 220 p. Broker pointed out that, in the tour of the company, Andy Halford, CFO, stated that iPhone deal from Verizon Wireless would be extremely well received in the U.S. market.

Actions have also benefited from renewed chatter that the Telecommunications giant is close to agree on an agreement to sell its stake in the mobile operator French SFR for 7bn €44pc billion €. Friday, the CEO of Vivendi said it would soon be able to enter into talks with Vodafone to buy the rest of SFR, as it is now weeks away from complete sale of. 8bn $ 5 its 20pc stake in NBC Universal. Vodafone reaches 3 175 p.

Smiths Group has jumped to the top of the "VIP" following confirmation, he rejected one. £ 2 5bn Apax offers for its medical devices division. Actions reinvigorated up to 99% to £ 13.64.

Rumours of renewed bid RSA has given a lift. The shares rose 1 to 134.9 p.

Among the second cruise, Michael Page and Hays passed on the back of an optimistic note from Morgan Stanley. David Hancock, Morgan Stanley analyst said: "We see a good entry point in our top pick staffing... with stocks having a pause for breath in 2011 despite commercial encouraging updates." Michael Page has acquired 19½ to 528 p while Hays added 1.4 to 126.8 p.

Salamander energy established 9.7 282.1 chosen as traders percent up on the fact that Charles Jamieson, Chairman, and two non-executive directors purchased a significant amount of shares later Friday. The company also announced this morning that spud a new well in the North is the Thailand.

Property company stir-fry Minerva 13 100 percent as merchants obtained its first opportunity to respond to the confirmation that the company received a takeover approach. Possible contenders are expected to include U.S. private equity giant Blackstone and British Land, down 7 to 520½p.

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Markets world rally, dollar slides on the federal stimulus plan Reseve

FTSE 100 index of London, which had greatly increased in the morning, closed up to 113 points – almost 2pc - and a maximum of 28 months of 5863 and US stocks opened sharply higher.

Dow Jones in stir-fry to a maximum of two fresh years, earning more than 170 points - or 1. 5pc - 11,386 - yesterday it 0. Pink 2pc after the Fed describes his plan binding purchase larger .the S & P 500 gained 1. 3pc and technology-rich Nasdaq was increased by 1. 2pc.

US retailers reported strong sales in October and has helped to lift shares with gap until early commercial 7pc 4pc Macy.Preuve U.S. shoppers were more spending on traders assisted clothes get rid of an increase in the number of new claims for unemployment higher than expected.

Actions around the world was supported by the decision of the Federal Reserve to introduce quantitative easing most of creating more money and to increase the supply of money in the economy - which will need to buy $grant to Treasury bonds a month until next June.

"We believe QE2 will be more efficient that investors realize", Andrew Garthwaite, London head of global strategy equity Credit Switzerland wrote in a report. "Remain us overweight actions.»

Positive feelings have lifted the other major awards European and Asian .the ' Germany DAX rose 1 77pc, CAC-40 France 9pc 1 and 2 2pc, despite pressures on exporters the dollar fell below the level of yen 81.Hong Kong Hang Seng added 1 6pc and Shanghai Composite Japan Nikkei China closed until 1 9pc to a maximum of seven months of 3,086.94.

Although the prospect of more money into the financial system has been a boon for stocks, dollar tombé.Le dollar is at its lowest level since December 2009 against a broad basket of currencies and secured against this index Thursday 1pc.

Finance Ministers in emerging as China and the Brazil criticized the Fed stimulus plan and said that additional supply of dollars of investment could lead to bubble in their country.

Sterling is increased to its highest in nine months against the dollar - briefly striking $1.63 - Thursday after the Bank of England held the interest rate and unlike conserved United States its programme for the purchase of goods organize according to the economic recovery signs United Kingdom is on the right track.

The pink 1pc of euro against the dollar as investors has increased tolerance to risk on inflation and growth forecasts in the euro area after the departure of the European Central Bank reference interest rates unchanged as expected.

In London, rising stock prices was assisted by a 6 1pc miner BHP jump, partly due to the decision of the Federal Reserve and the rest the outcome of the Canada block its $remained hostile to group potash fertilizer.

Other minor grew strongly and with the rise of Natural Resources, Xstrata, Kazakhmys and Rio Tinto between 5 1pc and 6 9pc.

Good new business has also helped the man mounted 14pc sentiments.Groupe upwards classification FTSE after that most large listed company hedge funds world beats its own first half profit forecasts and announces the resumption of the assets of the client.

The firm, which saw eight straight quarters of net, said customer assets rose to $40. 5bn at the end of September. against estimates of $39. 5bn in September.

Unilever, the consumer goods group increased by 5 3pc after an optimistic statement in its ability to raise prices and to reduce the cost of commodity prices higher that it corresponded forecasts with a counter rising sales of third quarter.

"Consensus beating results continue to be favourable to the market with the authorities in fact appear to be prepared ready and able to support the economic recovery, which is good news", Henk Potts, Barclays Wealth, equity strategist said.

The rise is tempered by a 4 6pc fall at Rolls Royce after Qantas Airways flights suspended its fleet of Airbus A380 after the failure which led to an emergency landing at Singapore Rolls-Royce Trent 900 engine.

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