OIL PRICES at record levels in euro terms are threatening to rock the euro zone's economy more than might be expected, with those countries least capable of riding out a shock being the worst hit.Standard estimates of the impact of oil prices on the euro zone economy are that a 10 per cent price hike dents annual growth by some 0.2 per cent in the ensuing three years, with disagreement over whether the hit is greater at the start or at the end.However, these projections do not take into account the euro/dollar exchange rate and may underestimate the impact at a time of widespread austerity. Nor do they reflect potential differences across euro zone countries... Read on

THE HEAD of the Consumers’ Union, Loucas Aristodemou, yesterday blasted local petrol stations for increasing fuel prices when the international price of oil has gone down.Commenting on market prices ahead of Easter, Aristodemou said the international price of petrol had reduced from $126 to $123 a barrel almost a week ago. This, he said, in combination with the increase in the euro’s purchasing power against the dollar, makes it feasible for Cyprus to see a reduction in fuel prices.“I am convinced that if this reduction took place a week ago, the companies in Cyprus must definitely have received loads with the new prices,” said Aristodemou.“But instead of seeing a reduction, some companies have already started increasing the price of fuel,” he added... 7 comments

A NEW Israeli company is setting up shop in Cyprus to bid in the second round of licensing for the remaining 12 blocks in Cyprus’ Exclusive Economic Zone (EEZ). According to Israeli business website Globes, controlling partners from the limited partnership company Israel Opportunity Energy Resources have announced plans to expand their activity beyond oil and gas exploration in and around Israel, setting up a subsidiary company in Cyprus. The local subsidiary called Cyprus Opportunity will be fully responsible for acquiring deepwater offshore licences in Cyprus’ second round of licensing.  ... 3 comments

TURKEY will begin drilling for oil or gas off northern Cyprus towards the end of March, having carried out seismic studies, the head of state energy company TPAO said yesterday.Any gas discovery in this area could raise the stakes in the negotiations over reunification of the island, and possibly increase tensions in the eastern Mediterranean.EU-member Cyprus, started exploring for gas south of the island in September 2011, angering Turkey and the Turkish Cypriot side.In reaction they signed a pact paving the way for exploration, and dispatched Turkey’s only seismic research vessel, owned by TPAO, to those waters under naval escort to search for potential reserves... 9 comments

CHINA’S third largest national oil company, CNOOC (China National Offshore Oil Corporation) has presented to Cyprus its plans for the construction of an LNG plant here to process and export the now confirmed offshore hydrocarbon reserves.A senior delegation from CNOOC met last Friday with the ad hoc ministerial committee handling energy issues, “to present their views on how to proceed with an LNG terminal here,” said Commerce Minister Praxoulla Antoniadou.“The company had asked us for the meeting, and of course we said yes, as we are currently examining all scenarios,” Antoniadou told the Mail... 9 comments

ALL Petrolina-Agip petrol stations will be shut today over a disagreement with the oil company.Stations will reopen tomorrow at 6am. The petrol stations want Petrolina to sell them fuel for less so they can have a “viable profit margin,” said Charis Toumbas, the secretary for the Petrolina petrol station owners’ association.Toumbas was not able to say yesterday how much they got fuel for and how much they instead wanted to buy it for but said that for “a year now we have been making fair requests which have not been met”.There are four oil companies in Cyprus, EKO Hellenic Petroleum, Lukoil, Exxon Mobil and Petrolina. ... Read on

Cyprus and Israel yesterday began a feasibility study for the construction of an underwater electric cable between the two countries that would ensure their energy security and offer Israel a channel to export energy to Europe.The Israel-Cyrpus leg, with an estimated cost of half a billion euros ($660 million), would eventually be part of a much longer cable continuing to Greece and from there to the pan-European electricity grid.If approved, the EuroAsia Interconnector will stretch 1,000 kilometers (600 miles) in total at a maximum depth of 2,000 meters, making it the most ambitious project ever of its kind, said Nasos Ktorides, chairman of DEH Quantum Energy... 8 comments

 THE PRESENCE of hydrocarbon reserves in Cypriot and Greek waters could and should lead to the forging of a common economic strategy between the two countries, the head of Greece's New Democracy party Antonis Samaras said in Nicosia yesterday.Samaras, on a three-day visit to the island, was speaking to reporters after being received by President Demetris Christofias.The two had an "extensive" discussion on issues relating to the exclusive economic zones (EEZ), Samaras said.The New Democracy leader stressed that Greece should take steps to delimit its EEZ just as Cyprus had done under former President Tassos Papadopoulos... 2 comments