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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. 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 about the effects of higher prices on the world economy. | |
London Brent rose 80 cents to $131.31. | |
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. | |
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. |
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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