Oil prices hit new high

Oil prices set a new record high above US$102 a barrel today, sparking fears of more pain for motorists on UK forecourts.

Light, sweet crude for April delivery reached US$102.08 on the New York Mercantile Exchange (Nymex) as investors turned to energy investments to combat a weakening dollar.

The price broke back through the US$100 mark yesterday, following trading at that level last week amid fears of a cut in global production.

Victor Shum, an energy analyst with Purvin & Gertz in Singapore, said: “Crude has cracked through the 100 US dollar level again and that’s driven by financial investors moving money into commodities markets.”

With the costs still to filter through to petrol pumps, it could spell more agony for motorists who are already seeing record prices per litre.

On Monday the AA said average petrol prices reached an all-time high of 104.85p a litre, with diesel also at a record 110.31p a litre.

The price of oil futures is now about US$10 higher than the closing price on February 6.