Oil prices on the rise again

Oil prices were once again hovering near record peaks today as fears of unrest in Venezuela and disruption in Iraq sparked fresh concerns over supplies.

The cost of a barrel of crude stood at $45.34, down slightly from last night’s closing price of $45.50 and yesterday’s peak of $45.75.

It will cause further anxiety for motorists, who have been warned to expect hikes in petrol prices.

The latest surge in the cost of crude came as heavy fighting in southern Iraq renewed fears of a disruption of the country’s vital oil supplies.

The possibility of unrest in Venezuela, where President Hugo Chavez faces a referendum on his rule this weekend, also weighed on markets.

Analysts said a defeat for Mr Chavez could disrupt oil shipments from Venezuela, which provides between 12% and 13% of the US’ imports.

Bruce Evers, oil analyst at Investec Securities, said this could have severe consequences, adding: “It’s going to be a very nervous weekend for oil traders.”

He said forecasts suggested the cost of crude could move “quite a bit higher” than it is now.

Fears of terrorist attacks, disruptions to Iraqi crude exports and financial troubles at Russia’s largest oil producer, Yukos, have all fuelled soaring prices in recent days.

These have piled pressure on already tight global supplies of crude.

Airline passengers became the latest casualties of the situation earlier this week when both British Airways and Virgin Atlantic more than doubled their long-haul fuel surcharges. The two carriers’ charge of £2.50 (€3.72) rose to £6 (€8.93) for a single long-haul flight, with the figure for a return trip up to £12 (€17.87) from £5 (€7.45).