In a recent article by the Daily Telegraph, it was noted that the IEA’s recent attempts to stem the increase in oil prices has created a large amount of concern, rather than quelling fears.
Key to these fears are the limited impact the IEA has had on oil prices by releasing extra from it’s reserves, a drop of 9c per barrel to be exact. The reason for this was apparently to counter loss of supplies in Libya, but also comes after Opec (the cartel that produces almost half of the world’s oil) refused to increase production despite Western pressure.
The IEA’s supply will always be limited and it’s influence stemmed by the amount of oil it can hoard, but this another clear demonstration of the unavoidable and consistent rise in oil prices.
Regardless of the IEA and Opec’s spats, it is just as plausible that Opec’s refusal to increase 
production is more than motivated by profits. The squeeze on oil supp
lies can be a major factor. The increasing scarcity of oil will hopefully finally start to make an impression on Western governments, that still offer a comparatively good deal when passing fossil fuels on to consumers.
With the Renewable Heat Incentive due to start imminently, and evidence like the aforementioned article, the increased profitability of heat pumps becomes more apparent. For large, country properties running on oil, the escalating costs needn’t be a concern if an initial investment is made in micro generation.
For more information on how to stem oil dependency, head to www.isoenergy.co.uk or call 01293 821345
(UPDATE)
True to initial concerns, the IEA and Opec quibble has caused the price of oil to start rising rapidly amidst concerns that output from the cartel may actually decrease rather than stay at current levels, which are unfavourable to Western powers.
