Wednesday evening business bulletin

Jun 11 2008 By Andrew Mernin

Global oil production fell last year for the first time since 2002 while consumption carried on rising, oil giant BP said today.

World production fell by 130,000 barrels per day last year to 81.53 million, the company said in its 2008 statistical review.

But usage rose by 1.1% to 85.22 million barrels per day, outweighing production by nearly 5%. The rise was thanks to soaring demand for the fuel in emerging economies like China, Latin America and Africa.

The data provides a clear illustration of the concerns over global supply which have been partly blamed for this year’s relentless rise in oil prices. Last week crude hit an all-time high of 139.12 US dollars a barrel, and it is currently around the 135 dollar mark.

Halifax Bank of Scotland shares dived amid a wider market sell-off today, taking the banking giant’s stock below the discounted price being offered to investors in its £4bn cash-call.

HBOS issued a statement confirming that its rights issue is fully under-written and on track despite the share price tumble.

But a question mark now hangs over the level of investor appetite for shares under the fundraising move, with HBOS stock falling to 262p at one stage - below the 275p rights issue price.

Fashion chain Zara’s Spanish parent today reported its lowest first quarter profits growth for four years after sales saw a sharp slowdown.

Inditex, which owns 77 Zara stores in the UK, said sales growth across its fashion brands dropped to 12% in the three months to the end of April, from 21% last year on a local currency basis.

Inditex blamed the sales slide largely on the cold weather seen across Europe in April and tough trading conditions in a number of its markets.

Net income increased by 10% to £173m - the group’s smallest first quarter increase since 2004 and lower than most analysts had pencilled in.

The pound at 5pm was US$1.9636 compared to US$1.9548 at the previous close while the euro at 5pm was £0.7922  compared to £0.7915 at the previous close.