Oil prices have been spiralling due to the “inexorable” rise in global demand rather than because of speculators, British MPs were told today.

Opec members have split on whether their output should be increased in a bid to boost global supply that might cause oil prices to drop.

The world’s major oil producing nations agreed today to cut production by 4% despite surging prices – a move that analysts said could drive crude oil prices even higher.

THE Organisation of Petroleum Exporting Countries, supplier of a third of the world’s oil, will probably defer output cuts until later this year because prices are rising and Iraqi exports are delayed, officials and analysts said.