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Global markets were thrown into turmoil as a result of tensions in Middle East countries where vast stocks of oil are kept. The rising price of oil, which could fuel further rises in already high inflation rates and hit corporate profits, affected stock markets. At the beginning of the week US shares, Asian stocks and European shares all closed heavily down.

The Spanish government is rushing to print new signs to alert its people of a reduction in the motorway speed limit as oil prices rise. This is just one method the administration is using to tackle rising prices due to unrest in Libya. The maximum speed limit on Spanish motorways will be lowered to 110kph (68mph). Around 13% of the oil Spain consumes comes from Libya.

Commodity markets this week have taken fright at the turmoil in Bahrain, which has caused another spike in oil prices. The market had temporarily recovered following the past month’s record-breaking levels per barrel due to the instability in the Middle East. With Libyan production already near zero, markets reacted badly to new demonstrations in Bahrain and the risk it may spread to neighbouring Saudi Arabia. Brent crude futures broke back above $113 a barrel.

A new scheme designed to increase green capital investment means incentive payments will be available to households from October 2012. The tariffs, called the Renewable Heat Incentive (RHI), involve payments being paid for 20 years based on every kilowatt hour of renewable heat produced. The government wants to reduce dependency on gas to reduce energy imports as well as cutting carbon emissions.

People in rural areas are calling for a cut in fuel duty following soaring prices on the forecourt. A litre of unleaded petrol in the north west of Scotland currently costs 139.9p, and Paula Gordon, who runs the Sleepy Hollow Smokehouse in the area with her husband Alistair, is feeling the pinch from the fuel price pressures caused by the Middle East unrest. She said plans to raise fuel duty in the April budget would be “crippling” for firms in rural areas.

Commodity analysts at Japanese bank Nomura have warned that oil prices could perhaps strike $220 a barrel if the crisis in the Middle East continues. The market gurus compared the current situation to the 1990-1991 Gulf War, saying if Algeria and Libya were to halt oil production, prices could peak at the $220 mark. Others have given a more modest prediction of $150 if the unrest spreads. The average barrel price has surged beyond $120 in the past fortnight.

Military and business leaders in the USA warned that further oil price rises resulting from the Libyan revolt would mean a heavy burden on strained Pentagon budgets and the US economy. General Charles Wald, the former deputy commander of European Command, said each $10 rise in a barrel costs the Pentagon an additional $1.3bn. “You start adding a billion here, a billion there, and that is a huge amount of money being spent, even in military terms,” he said.

Saudi Arabia has opened emergency talks with European refinery groups after world oil prices surged to the $120 a barrel mark. The Saudis and their partners in the Opec oil producers cartel said any shortfall in oil supply caused by instability in Libya would be made up. An engineer with the Sirte oil company said a blockade by rebels had prevented 80,000 barrels a day being exported from the Dregga field alone.

British Gas has been criticised for announcing record profits just after it raised prices. The UK’s biggest gas supplier has just revealed a 24% increase in profits over the last few months. About eight million customers were hit with a price hike on December 10, raising the average dual fuel bill by £80.

Energy regulator Ofgem has proposed to sweep away “complex and unfair pricing practices” by the main gas and electricity suppliers after examining the market. Ofgem added that, for the first time, it had uncovered evidence that suppliers had pushed up prices in response to rising costs more swiftly than they reduced them when costs fell.

Energy watchdog Ofgem is looking into recent gas and electricity price rises, to see if more action is needed to protect consumers. It said that the net profit margin of £65 per typical customer in September was now £90, a 38% increase.

The UK’s first Climate Week, which takes place between March 21 and 27, 2011, is seven days dedicated to showing how we can combat climate change. Organisations from every part of society are planning activities for Climate Week, when winners of the prestigious Climate Week Awards will be announced. Entries can be submitted right now in a range of categories which include initiatives by businesses, community groups and public services.