Oil prices increase to $70 to hit four-year high

Published: Wilson Clark

On: Jan 2018

Since December 2014, the oil price has hit nearly $70 a barrel for the very first time. After the members of Opec, the Brent crude jumped, the list of 14 oil producing countries which accounts for around 40 % of the output of the world, and it’s expected to continue to the limited supplies.

The motoring group, called the RAC has warned that increasing oil price could ultimately lead to greater forecourt costs for the motorists.

However, it is said that the supermarkets resumed their petrol price war then the drivers would benefit.

Oil prices rise of $70 a barrel

The UAE oil minister Suhail al-Mazouei and the Opec president told that, it was committed to limit output until end of the year.

Opec and other countries such as Russia, last year said that they would enlarge a deal in order to cut the production to support oil prices which had decreased to $50 a barrel when the agreement delayed in the year 2016.

The American energy information administration said that the crude oil inventories slowdown almost 5 million barrels to around 419.5 million in the week to January 5th. The production of the United States of America fell down by 290,000 barrels per day to 9.5 million.

American oil also increased 1.5% to $ 64.51 a barrel. The RAC told that increasing oil prices were have quick effect in the forecourt because of the increase causing the wholesale fuel price to rise.

The unleaded price of petrol has increased by 5p since the month of November to 121.27p per litre. And the prices of diesel have been climbed 3p to 123.97p over the same period.

It is also said that the filling cost of an average 55 litre family vehicle was £66.69 for petrol & £68.18 for diesel.