UK retailers cut petrol prices

Supermarket giant Tesco said it was cutting the cost of petrol in the UK today as oil prices fell to their lowest level for a year.

The retailer is lowering unleaded and diesel by 3p across its 430 British forecourts with immediate effect. It follows a penny cut by rival Asda at the start of this week, and price drops made by a host of retailers last month.

Light, sweet crude for November delivery on New York Mercantile Exchange – the world’s benchmark price – tumbled as low as US$82 a barrel in early trading today, the lowest price since mid-October last year.

Mounting fears of a global recession, which will weaken oil demand, have seen the price fall in recent days. Nymex crude is now 44% cheaper than the $147 high hit in July.

London November Brent futures also fell below US$80 a barrel.