OPEC, the producer of more than a third of the world’s oil, has moved to abandon its price targets because its member countries can do nothing to drive prices lower than nearly $50 a barrel.

UK industry breathed a sigh of relief today after oil prices recorded their heaviest fall in a single session since 2001.

The cost of oil has hit another record high. The price of a barrel of US crude soared to $55.67, passing the previous high of $55.50, due to fears over a potential shipping strike in Norway.

Oil prices reached a new record high today on fears of a sharp slowdown in output from Russia and Iraq.

Hopes were high today that there would be a smoother flow of oil from Iraq following the capture of former president Saddam Hussein.