Oil prices

Emergency oil supplies released by the 28-member International Energy Agency took markets by surprise on Thursday, prompting a plunge in oil and gold prices alongside downturns in the major United States, European, Asian and Australian bourses.

The relatively high value of the New Zealand dollar is providing motorists with some protection from soaring petrol prices, but warnings came that a 6c a litre fall in pump prices yesterday could be the last.

Hard hit motorists may have to bear further escalating prices at the pump with medium-term global oil prices forecast to rise.

Air New Zealand is still regarded as having good earnings potential despite rising fuel prices, Forsyth Barr broker Suzanne Kinnaird said yesterday.

Retail banks rushed to cut their floating home loan rates yesterday after the Reserve Bank matched expectations and cut the official cash rate by 0.5% to 2.5%.

If it is still acceptably fashionable in certain circles to deride "carbon plans", "green" policies and alternative energy options, no-one seems to have told the leadership of the UK Government, which this week is on the offensive over failure within its ranks to make progress in these areas.

Tensions in the Middle East have propelled oil prices to a more than two-year high and are causing more concerns for New Zealand motorists after this week's 5c-a-litre hike in fuel prices.

Dunedin's water pipes must be upgraded before oil shocks intensify and worldwide energy prices surge, a draft paper prepared for the city council suggests.