SOARING oil prices have led to the loss of jobs at a struggling manufacturer, The Northern Echo can reveal.

Eighteen workers have been made redundant at Mono Containers, in Durham, the third round of job losses this year.

More bad news is on the way as unions have been called to another meeting at the troubled factory, which employs about 100 people, next week, to discuss redundancies.

Mono makes preformed plastic cups for the food industry.

Last year, 35 staff were made redundant and this year another 60 have lost their jobs, bringing the total to more than 100 in only a year.

Nick Halton, of the Transport and General Workers' Union (TGWU), said: "There has been a steady decline at Mono Containers due to the rising oil price, which obviously has an effect on the price of plastic.

"The latest rises have really started to bite into the company's profitability.

"I have a meeting at the factory on Wednesday. There has been one phase of redundancies, and those workers have gone now, and the meeting is to discuss the second phase."

Trade union Amicus, which represents engineering workers at Mono Containers, is joining the TGWU at the meeting.

The company's troubles were exacerbated earlier this year when German yoghurt maker Mller - a major customer - withdrew its business.

Soaring oil prices and high raw materials costs have led to several companies facing difficulties in the region during the past two months.

Last month, a survey showed confidence among manufacturers was at an all-time low because many were unable to pass on the increases in steel and oil prices to customers.

Presswork Metals, in Newton Aycliffe, County Durham, went into administrative receivership last month, and earlier this month said it would have to close by Christmas, with the loss of about 200 jobs.

Lionweld Kennedy, on Teesside, also went into administration before a buyer was found for the company, which secured most of the jobs.

Kenmore Refrigeration, in Crook, County Durham, made 17 workers redundant recently.

l Oil prices fell to their lowest level in nearly two months in London yesterday after an energy watchdog said the cost of crude may have peaked.

A barrel of Brent crude was trading at $43.50 - its lowest level since September 21 and significantly below the record $51.48 set last month.

It coincided with a report from the International Energy Agency (IEA) that said higher production by Opec had taken the steam out of oil prices in the second half of last month. At the same time, production was restored to many rigs in the Gulf of Mexico after four hurricanes in the region in late summer and early autumn.

Paul Horsnell, head of energy research at Barclays Capital, said prices had fallen too far, too quickly and it was wishful thinking by the IEA to talk of a peak.

He said the industry remained overstretched and stocks of heating oil were particularly low, making the sector vulnerable to a cold snap in markets such as the north-western US, Japan, South Korea and Germany.