In Short

A round-up of other business news in brief

Oil price surges as Opec output cut expected

Oil surged almost 10 per cent to nearly $55 a barrel yesterday on expectations that Opec will cut output again.

Opec president Chakib Khelil said a further output cut of more than one million barrels per day would be necessary to support the oil market in its current state.

US crude rose $4.80 to $54.73.

The contract had dipped to a three-and-a-half year low of $48.25 on Friday. Brent crude was up $4.71 at $53.90.

The market's rise is "part of a broader reaction to a firmer equity market and a weaker US dollar", said Tim Evans, energy analyst for Citi Futures Perspective.

"We continue to see evidence of an Opec consensus for a further production cut when the cartel meets on Saturday," he added.

NI electricity prices to be reviewed

The official watchdog which oversees the provision of public utilities is to review electricity prices in Northern Ireland.

Tariffs jumped by more than 50 per cent in 2008 with a 14 per cent rise coming into effect in July and a further 33 per cent rise in October.

"There is no guarantee that the review will result in a reduction in electricity prices, as NIE Energy has already bought a significant proportion of its energy requirements in advance, to help ensure price stability," said Industry Minister Arlene Foster.

Fall in Magners sales slows down

CC Group's Magners cider sales in British pubs and restaurants posted a smaller decline in September, Merrion stockbrokers said, citing data from research company AC Nielsen.

The quantity of Magners sold fell 23.7 per cent in September compared with the same month a year earlier, Merrion said in a note.

Sales on that basis dropped 33.1 per cent in August on a year earlier, it said.

CC rose 31 cent, or 27.2 per cent, to €1.45 in Dublin yesterday. - (Bloomberg)

Hungary cuts interest rates

Hungary's central bank cut key interest rates by 50 basis points to 11 per cent in a surprise move at its monthly policy meeting.

This was the first rate meeting of the banks rate-setting monetary council since October 22nd, when it raised interest rates by 300 basis points in an emergency move to shore up the falling forint and domestic financial markets.

The bank also released its fresh quarterly inflation report, in which it sharply reduced its inflation forecasts for both next year and 2010, and also cut its economic growth forecasts.

Car components firm to cut jobs

More job losses in the North's manufacturing sector were confirmed yesterday by the Calcast plant in Derry.

The car components manufacturer, owned by French parent Montupet, confirmed some 90 jobs are to go next month.

Irish-Canadian wind power projects

GE Energy Financial Services will provide funding for $800 million worth of wind power projects that Irish- Canadian group Finavera Renewables is developing in British Columbia.

Finavera said yesterday it had signed a memorandum of understanding with GE Energy Financial Services for proposed financing of four wind farms with a total capacity to generate 295 megawatts of electricity, enough to power about 100,000 homes.

Sustainable Energy gets new head

Bord na Móna's director of innovation, Prof J Owen Lewis, will take over as chief executive of statutory agency Sustainable Energy Ireland in January.