Petrol Prices: Saudi Signals Action 'To Cut Costs'
The lacklustre recovery in the world economy has reportedly prompted Saudi Arabia to promise an increase in oil production in a bid to bring down prices.
Pressure from G7 nations to act had been mounting on Riyadh and other major oil producers amid concerns high oil costs risked harming growth.
Global crude benchmarks hit four-month highs of $117.95 last week and it is understood Saudi Arabia, the world's top oil exporter, remains content to see Brent Crude stabilise at $100 dollars a barrel.
London-traded Brent is currently trading above $111 and the Financial Times, citing a Gulf-based oil official, says production could be increased until the year's end.
A 30% spike in oil costs over the past three months has led to a creep back towards record fuel prices in the UK.
The average unleaded price is topping 140p-per-litre (ppl) while diesel is nearing 145ppl - both just over 2ppl short of the highs witnessed in April.
Rising oil and other commodity prices - while out of the Bank of England's control - have added to wider inflationary pressures on the economy.
A fall in the oil price would be unlikely to have any immediate impact on wider energy bills for the coming winter as firms must make their wholesale purchases in advance.
Last week's oil price rise was a market response to the US Federal Reserve's decision to begin a third round of bond-buying to boost money supply in the country's faltering economy.
The United States, in the run-up to November's presidential election, was among the countries urging oil producers to increase output.
It is said that Saudi Arabia would not be alone in pumping more oil to keep prices from rising.
In addition to the pressure on prices from economic stimulus measures in the US, Europe and Asia there have also been fears about security of supply amid tensions with Iran.
what do you think?
They could bring it down to $80 a barrel and still make a killing But it's all about greed
Great news !! this will help keep inflation lower & thus help keep interest rates low, Love IT!!!!!!!!!!!!
Are the barrels they use still the same size? Have new labels been put on them: "Contents might settle during transit"? ...
It doesn't matter what the Saudis do...once the oil companies and HM Government have taken their share the ever escalating rip off will continue!!
In the USA oil is $87 a barrel in Saudi Arabia its $81 but here it is $115 When the price here was $140 fuel went up to £1.44 a litre when it dropped to $90 fuel went down by 4p not 50p now it is higher than before. In the USA it is $3.90 a GALLON in Saudi Arabia it is $1.20 a gallon, in Venezuela it is 2p a litre. Osborne now wants in March to increase the tax by 10p a litre so God help us all as this will destroy business and people
commonly known as you needed it,we hammer it,of course having high fuel costs add in higher transport costs which mean higher pricers down the chain,while consumer wages stay stagnant,everything else rises, think we should all have a national strike day,seems they made laws against protestng at refineries!
.THE TAX WE ARE CHARGED IS WASTED.........PURE GREED.......
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