Oil price hits new high
Crude oil prices broke through $107 US a barrel to set another record in New York today.
It is the fifth time in six sessions that oil prices have reached new highs, as investors shift funds into oil as a hedge against a weakening dollar. Cartel Opec’s decision last week not to raise supply has added to pressures.
Many analysts believe the rise in crude prices is not supported by fundamentals, with supplies generally rising while demand is falling.
Peter Beutel, president of the energy risk management firm Cameron Hanover, said in a research note: “By gobbling up everything in sight, (investors) are pushing food and fuel prices to ruinously high levels,”
Motorists have seen the average price of petrol across the UK hit 105.7p, with diesel at 111.6p. Chancellor Alistair Darling is under pressure to ease the pain by postponing a planned 2p rise in fuel duty when he delivers the Budget on Wednesday.
Brent crude futures rose to more than 103 dollars in London today.
