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Oil cools after vaulting to $135 Oil cools after vaulting to $135
(10 minutes later)
Oil prices were well off their peak of $135 a barrel on Friday as investors cashed in on five sessions of rises.Oil prices were well off their peak of $135 a barrel on Friday as investors cashed in on five sessions of rises.
US sweet light crude surged to $135.09 on Thursday, before tumbling to close at $130.81 - the first drop in five days. London Brent also fell. US sweet light crude surged to $135.09 on Thursday, before tumbling to close at $130.81. London's benchmark Brent crude also fell.
But supply worries meant that prices once again found some support in Asian trade on Friday.But supply worries meant that prices once again found some support in Asian trade on Friday.
US crude rose 47 cents to $131.28 amid fears over the effects of higher prices on the world economy. US crude rose 47 cents to $131.28 amid fears about the effects of higher prices on the world economy.
Oil prices have risen about 40% this year, having a punishing effect on the cost of fuel and food. London Brent rose 80 cents to $131.31.
class="lp" href="http://news.bbc.co.uk/1/hi/talking_point/default.stm">HAVE YOUR SAYThe price of gas is much more than the American people can afford.Lee, Phenix City, Alabama class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=4831&edition=${editionCode}">Send us your comments Oil prices have risen about 40% this year, as soaring demand from emerging economies looking to power their growth has been exacerbated by supply fears and speculation on the world markets.
"Supplies not growing is still the main thing," said Tony Nunan, risk management executive at Tokyo-based Mitsubishi Corp. class="bodl" href="#petrol">The path of UK petrol and diesel prices
"Supplies not growing is still the main thing," said Tony Nunan at Tokyo-based Mitsubishi Corp.
"Opec can turn the tap but they cannot do it forever, and non-Opec growth is not enough," he added."Opec can turn the tap but they cannot do it forever, and non-Opec growth is not enough," he added.
At the same time, demand has been strong as emerging economies such as show no signs of needing less energy to power their growth. Punishing effect
The record-busting run in oil has pushed fuel bills up to the point where British drivers will pay £110m more for petrol over this weekend's bank holiday than they did a year ago.
UK'S CHEAPEST & MOST EXPENSIVE FUEL Cheapest unleaded: 107.9p (Gateshead) Most expensive unleaded: 125p (Northampton) Cheapest diesel: 117.9p (Mansfield) Most expensive diesel: 138p (Hexham) Source: PetrolPrices.com High oil prices are here to stay
The high cost of fuel is also having a punishing effect on airlines, with a number warning that they will have to cut flights and increase prices to survive.
British Airways boss Willie Walsh told journalists on a press trip to promote the UK carrier's new OpenSkies venture that airlines will now struggle to offer the cheap fares to which UK travellers have become accustomed.
He told the Guardian newspaper that many budget airlines would collapse, squeezed by the deadly combination of high fuel costs and declining passenger numbers, as consumers rein in their spending.
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