Share Prices & Company Research


29 November 2021

Redmayne Bentley Market Round Up

US president Joe Biden announced the release of oil from the US’s strategic stockpile in an attempt to drive down oil prices which have soared in recent months. The release of 50m barrels of oil was authorised last Tuesday in a move co-ordinated with China, India, Japan, South Korea, and the UK.  Although, the move seems to have been futile as Brent, the international crude benchmark, closed 3.3% higher at US$82.31 a barrel on the same day and, at the time of writing, it maintains that level. The oil price rise came about due to the limited ability of the coalition countries to increase their supplies for a prolonged period. The UK and India planned to release 1.5m and 5m barrels respectively, but the collaborative effort was in vain after failing to achieve its purpose. The lack of capacity has proven the influence of the open monopolistic behaviour of OPEC+ (the largest cartel of oil producing nations). On a more positive note, the coalition was a first in aligning China with Western producers, demonstrating a softening of US-Sino relations.

As these higher energy prices take their grip on the UK economy, Britain’s seventh-largest energy supplier was placed into special administration last week. The mechanism to protect customers from insolvency is a first for the UK energy sector and the UK government is now providing £1.7bn in working capital to allow Bulb’s customers continuity until April. Bulb is the biggest energy supplier to collapse in Britain in nearly 20 years and the 23rd since the beginning of August as the industry struggles to cope with surging wholesale prices.

Please note that investments and income arising from them can fall as well as rise in value. This communication is for information only and does not constitute a recommendation to buy or sell the shares of the investments mentioned.
Redmayne Bentley Market Round Up
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