Oil prices soar - We’re far too vulnerable

THE instability in North Africa was bound to have an impact on oil prices and underline again how utterly dependent we are on imported energy.

In London yesterday oil surged more than 7.5% to its highest level since August, 2008. Brent crude oil for April spiked up $8.54 a barrel to a peak of $119.79 before easing to around $114. US crude futures for April rose as high as $103.41.

Libyan output has fallen by an estimated 1.2 million barrels per day. Goldman Sachs warned that the market could not ignore the spread of unrest and suggested that shortages might lead to rationing.