Oil prices soar
Oil prices were back near $60 US a barrel today – fuelling worries that motorists could see a reversal of recent falls in forecourt costs.
Petrol prices have recently been at their lowest level since the summer of 2005, reflecting oil prices of 50 US dollars a barrel in New York.
But the price of light, sweet crude rose above 60 US dollars this morning before settling at just below the psychologically-important barrier later on in the day.
Factors behind the recent increase included forecasts of further cold weather in the United States and the shutdown of a gas field in California. Comments from Iran’s supreme leader Ayatollah Khamenei also rekindled worries that supplies from the country could be hindered.
And the market has also been unsettled by developments in oil-rich Nigeria, where a French national was kidnapped in the latest of a series of incidents in the past month.
UK petrol prices have edged higher in the last couple of days but remain at least two pence below the year’s start, the AA said.
Petrol prices yesterday averaged 86.26 pence per litre across the UK, up from the year’s low of 86.03 pence per litre on February 1 but well below the 88.32 pence per litre on January 2.
The cost of diesel has risen from the year’s low of 90.15 pence per litre on February 1 to yesterday’s 90.35 pence. The price difference between petrol and more expensive diesel remains just above four pence a litre, in line with the average for 2005 and significantly below the highs of more than 5.5 pence per litre last year.
Paul Watters, head of AA Public Affairs, said: “We have seen some increase in price on petrol station forecourts, but we hope retailers won’t jump the gun. Prices after the weekend may tell.”
