Global food prices stable, but still high

Updated 01 December 2012
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Global food prices stable, but still high

Global food prices remained stable, though close to 2008 record levels, according to the World Bank.
It warned that a “new norm” of costlier food was setting in and threatening to increase hunger and malnutrition in the world’s poorer regions.
In an update of its quarterly “Food Price Watch” report, the World Bank said the absence of “panic policies,” such as food export restrictions, had helped stabilize commodity prices since price spikes in July.
“Even as the world seems to have averted a global food price crisis, a growing sense of a ‘new norm’ of high and volatile prices seems to be consolidating,” the World Bank said. “The world cannot afford to get used to or be complacent with high and volatile food prices.”
The World Bank food price index shows that while prices have stabilized they are 7 percent higher than a year ago.
In particular, grains are up 12 percent from a year ago and close to the all-time high set during a global food price crisis in 2008, when food riots broke out in Asia and Africa.
The worst droughts in more than half a century in the United States corn belt and food basket regions of the Black Sea pushed up the global prices of wheat and maize this year, at a time that the world economy was slowing and Europe has been engulfed in a debt crisis.


Libya’s National Oil against paying ‘ransom’ to reopen El Sharara field

Updated 14 December 2018
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Libya’s National Oil against paying ‘ransom’ to reopen El Sharara field

  • Ransom payment would set dangerous precedent
  • NOC declared force majeure on exports on Monday

BENGHAZI: Libya’s state-owned National Oil Corp. (NOC) said it was against paying a ransom to an armed group that has halted crude production at the country’s largest oilfield.
“Any attempt to pay a ransom to the armed militia which shut down El Sharara (oilfield) would set a dangerous precedent that would threaten the recovery of the Libyan economy,” NOC Chairman Mustafa Sanalla said in a statement on the company’s website.
NOC on Monday declared force majeure on exports from the 315,000-barrels-per-day oilfield after it was seized at the weekend by a local militia group.
The nearby El-Feel oilfield, which uses the same power supply as El Sharara, was still producing normally, a spokesman for NOC said, without giving an output figure. The field usually pumps around 70,000 bpd.
Since 2013 Libya has faced a wave of blockages of oilfields and export terminals by armed groups and civilians trying to press the country’s weak state into concessions.
Officials have tended to end such action by paying off protesters who demand to be added to the public payroll.
At El Sharara, in southern Libya, a mix of state-paid guards, civilians and tribesmen have occupied the field, camping there since Saturday, protesters and oil workers said. The protesters work in shifts, with some going home at night.
NOC has evacuated some staff by plane, engineers at the oilfield said. A number of sub-stations away from the main field have been vacated and equipment removed.
The occupiers are divided, with members of the Petroleum Facilities Guard (PFG) indicating they would end the blockade in return for a quick cash payment, oil workers say. The PFG has demanded more men be added to the public payroll.
The tribesmen have asked for long-term development funds, which might take time.
Libya is run by two competing, weak governments. Armed groups, tribesmen and normal Libyans tend to vent their anger about high inflation and a lack of infrastructure on the NOC, which they see as a cash cow booking billions of dollars in oil and gas revenues annually.