Oil prices rise to hit four-year high of $70 a barrel

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The value of oil has hit $70 a barrel for the first time since December 2014.

Brent unprocessed climbed after members of Opec, the cartel of 14 oil-producing realms that accounts for 40% of the world’s output, said it would carry on to limit supplies.

The RAC, the motoring group, has warned that rising oil assays could lead to higher forecourt costs for motorists.

However, the AA powered that drivers would benefit if supermarkets resumed their petrol honorarium war.

Suhail al-Mazrouei, the UAE oil minister and Opec president, said it was committed to limiting output until the end of the year.

Final year, Opec and other nations including Russia said they whim extend a deal to cut production to help support oil prices that had crumple below $50 a barrel when the agreement was struck in 2016.

Thursday’s take-off provoke was also bolstered by a surprise fall in US oil stockpiles.

The US Energy Information Conduct on said crude inventories fell by almost five million barrels to 419.5 million barrels in the week to 5 January. US effort also fell by 290,000 barrels per day to 9.5 million.

US oil also arise 1.5% to $64.51 a barrel.

The RAC said that rising oil prices were in all probability to have «a knock-on effect in the forecourt due to the increase causing the wholesale fee of fuel to rise».

The price of unleaded petrol has already risen by just about 5p since November to 121.27p per litre, while diesel prices oblige jumped 3p to 123.97p over the same period.

It said that price of filling an average 55-litre family car was now £66.69 for petrol and £68.18 for diesel.

An RAC spokesman asserted: «If oil stays at this level, pump price hikes will be not quite inevitable.

«With households across the country still feeling the fetch of Christmas this is not the start to 2018 anyone would have necessitated. It could also negatively affect business and further fuel inflation.»

But the AA mentioned: «Oil at $70 a barrel has yet to threaten a pump price surge on UK forecourts.»

An AA spokesman signified petrol prices had risen in recent weeks after supermarkets put their nuclear fuel price war on hold.

According to data from the AA, supermarkets lowered petrol payments several times last year to a low of 111.8p a litre in July.

While the AA abandoned that wholesale prices have risen, it added: «The current soprano prices are more a reflection of reduced fuel price competition at supermarkets.»

By December, petrol was an common of 117.6p a litre at supermarkets and 121.9p ea litre at other outlets.

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