Latest / Early Edition with Ryan Bridge / Vicky Pryce: Business correspondent on the latest in oil prices with possibility of new talks between US, Iran

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Vicky Pryce: Business correspondent on the latest in oil prices with possibility of new talks between US, Iran · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Right, Let's do business. Vicki Price for US business correspondent.
• 0:02
  Speaker 1: Vicky good morning, good morning, Good to have you on
• 0:05
  Speaker 1: the program. Now, big debate. I want to start with
• 0:08
  Speaker 1: the debate about the North Sea oil exploration because the
• 0:12
  Speaker 1: US and Trump have been putting some pressure on here.
• 0:14
  Speaker 1: What's the lightest on there.
• 0:17
  Speaker 2: Well, what's going on in the UK is, of course,
• 0:19
  Speaker 2: we've got a division in politics. We have quite a
• 0:22
  Speaker 2: lot of political parties, including now the Greens, who seem
• 0:25
  Speaker 2: to be in the a sentence here in the UK,
• 0:28
  Speaker 2: arguing that we should of course push, if anything hard
• 0:31
  Speaker 2: for net zero and certainly not go down the route
• 0:35
  Speaker 2: of allowing more licenses new licenses for drilling. Also, the
• 0:41
  Speaker 2: Labor Party, which is a ruling party right now, has
• 0:45
  Speaker 2: also expressed concerns about moving in that direction. They have
• 0:50
  Speaker 2: more or less stuck with the gun, saying that it's
• 0:52
  Speaker 2: only the fields that are already operating that can be
• 0:56
  Speaker 2: developed further rather than granting new licenses. But that's up
• 0:59
  Speaker 2: in the right now. But you've got loads of other
• 1:02
  Speaker 2: parties here, particularly the Conservatives of course and Reform, arguing
• 1:07
  Speaker 2: that we should be using nauseoil a lot more because obviously,
• 1:11
  Speaker 2: given everything else happening. Getting a bit more security is
• 1:15
  Speaker 2: a good thing, you know. Of course, everybody is arguing
• 1:18
  Speaker 2: that gas markets and oil markets, as we've seen recently,
• 1:21
  Speaker 2: are very international markets. Everything is priced in global markets
• 1:26
  Speaker 2: rather than necessarily things are being delivered to the UK
• 1:31
  Speaker 2: at lower prices. So we've stuck anyway, But there is
• 1:34
  Speaker 2: an argument that you get a lot more revenue tax
• 1:37
  Speaker 2: revenue that way, and a lot of the money that
• 1:40
  Speaker 2: comes out of selling more oil and gas stays in
• 1:43
  Speaker 2: the UK as a result. I mean, Norway is doing
• 1:45
  Speaker 2: it right now. It's exploring more fields and granted more
• 1:49
  Speaker 2: licenses and we do import in the UK strangely, an
• 1:52
  Speaker 2: awful lot of gas from Norway right now.
• 1:55
  Speaker 1: Yeah, and the stocks are doing well as a result
• 1:57
  Speaker 1: of it. Right now.
• 1:58
  Speaker 2: The oil well, yes, indeed, if you're in the oil market,
• 2:03
  Speaker 2: you're doing all right for the moment now.
• 2:04
  Speaker 1: Oil prices I was sitting at around ninety dollars brink crowd,
• 2:08
  Speaker 1: at least ninety dollars last time I checked. But I
• 2:10
  Speaker 1: mean up and down with what's going on in the
• 2:12
  Speaker 1: Middle East, well.
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  Speaker 2: Yes, I mean what's happening is of course, even now,
• 2:18
  Speaker 2: the news here in the UK is that yes, there's
• 2:20
  Speaker 2: going to be a meeting in Pakistan, but we don't
• 2:22
  Speaker 2: actually know whether Iran is going to be there at all,
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  Speaker 2: so basically negotiating further to have some more permanent arrangement
• 2:29
  Speaker 2: in terms of a cease fire lasting for longer on
• 2:32
  Speaker 2: present assumptions is going to last only for a few
• 2:35
  Speaker 2: more days, and everything could of course unsettled the markets again.
• 2:38
  Speaker 2: But right this minute, the market seem to think that
• 2:40
  Speaker 2: some resolution will be found. So though it prices went
• 2:44
  Speaker 2: up again in the last day because Iran moved in
• 2:48
  Speaker 2: too closer straight off hor moves completely even though it
• 2:51
  Speaker 2: had opened it supposedly just a day earlier, what we're
• 2:55
  Speaker 2: seeing is that the market still thinks that some solution
• 2:58
  Speaker 2: will be found, and there are also indications that different
• 3:01
  Speaker 2: routes are developing in terms of how oil comes out
• 3:04
  Speaker 2: of the Gulf, possibly which might of course become more
• 3:07
  Speaker 2: permanent for the future and therefore eat some of the
• 3:10
  Speaker 2: tensions if they ever reappear again, assuming of course, there's
• 3:13
  Speaker 2: a resolution to the conflict in the next few weeks.
• 3:18
  Speaker 2: So the market seem to think that, yes, ups and downs,
• 3:21
  Speaker 2: but overall we're not at the heights that we saw
• 3:24
  Speaker 2: after the invasion of Ukraine by Russia and also in
• 3:28
  Speaker 2: previous oil crisis. So so far, I presume, so good.
• 3:32
  Speaker 2: But we do also know, of course that the International
• 3:34
  Speaker 2: Monetary Fund is saying that if rates, if oil prices
• 3:39
  Speaker 2: stay where there are, interest rates may have to be higher,
• 3:41
  Speaker 2: inflation will be higher, and the world economy is going
• 3:44
  Speaker 2: to grow a lot more slowly, and that's the real problem.
• 3:46
  Speaker 1: Vicky, appreciate your update this morning. Vicki Price, our business correspondent.
• 3:49
  Speaker 1: By the way, Vicky will be with us on Monday morning.
• 3:52
  Speaker 1: She's Chief Economic Advisor at the UK Scender for Economics
• 3:55
  Speaker 1: and Business Research, used to advise the UK government as well,
• 3:58
  Speaker 1: so very useful to have on your Monday morning to
• 4:00
  Speaker 1: set up your week. For more from Early Edition with
• 4:03
  Speaker 1: Ryan Bridge. Listen live to News Talks it B from
• 4:06
  Speaker 1: five am weekdays, or follow the podcast on iHeartRadio.