Petrol warning as oil price hits new high
British motorists were today warned to expect petrol prices above 80p (120c) a litre for the “foreseeable future” after the cost of oil soared to a new high.
The price of a barrel of crude in New York broke through the 44 US dollars mark to peak at 44.24 after setting further records yesterday.
The move came as Opec president Purnomo Yusgiantoro warned oil prices were at “crazy” levels and that there was no additional supply to cool the situation.
Experts warned this would bring little respite to motorists, who would probably see petrol prices remain at their current high levels.
Richard Freeman, spokesman for the AA, said: “I think we are unfortunately going to have to live with petrol over 80p a litre for the foreseeable future.
“Certainly in the short to medium term it looks like the pressure will continue.”
Prices have risen in recent days on fears of a sharp slowdown in output from Russia as investors fret over a stand-off between Russian authorities and the country’s largest oil firm, Yukos.
The US government’s warning of possible terrorist attacks against financial institutions in New York City, Washington and Newark, New Jersey, has also caused fresh anxiety.
But analysts said today that high demand was largely to blame and seemed unlikely to fall in the near future.
Investec oil expert Bruce Evers said: “Markets are very, very jittery and I think it’s not just geopolitical events and Yukos that are to blame.
“It is the growing realisation that demand continues to rise and supply is constrained. You can’t just wave your magic wand and produce another million barrels a day from nowhere. It takes time.”
Analysts have forecast that prices are likely to rise further ahead of winter, possibly to a peak of 50 US dollars a barrel.
