OPEC is increasingly making the most of its unique position as the font of global supplies
Oil prices are up almost a third over the last three months. It’s a hugely significant increase that could seriously aggravate the UK’s cost of living crisis. Yet this oil price surge seems to have barely been noticed by much of our political and media class.
The cost of a barrel of Brent crude hovered above $90 a barrel towards the end of last week, up from around $70 in early June – a 30pc rise. That’s why the price of petrol rocketed nearly 7p during August to an average of 152.25p per litre, according to RAC analysis, while diesel shot up 8p to 154.37p.
These are some of the sharpest monthly fuel price increases in more than 20 years. And, as the RAC says, with the oil price forecast to rise more, “there are likely to be further petrol and diesel price rises on forecourts up and down the UK in the coming weeks”.
Throughout the summer, the economic data has been weak across Europe, alongside a sharp slowdown in China – the world’s largest crude importer. As such, demand for oil should be slowing, causing prices to fall.