by David Smith, Economics Editor
OIL prices are set to rise further this year, beating last week’s record levels, according to analysts. Some believe the price will hit $90 a barrel.
A survey of analysts by Ideaglobal.com, a financial research company, shows a general belief that the peak for prices has not yet been reached. The median expectation for this year’s high in Brent crude was $85.50, within a range of expectations running from $77.50 to $90.
Petrol prices rose to an average of more than 95p a litre on Friday, close to the record of 96p for unleaded.
A further rise in crude prices would make forecourt prices of more than £1 a litre the norm.
Brent crude hit an all-time high of $74.22 a barrel on Thursday, amid renewed concerns about supply disruptions. Iran’s decision to press ahead with nuclear enrichment and the threat of US action have produced the latest outbreak of market jitters.
In New York on Friday the price of US crude for June delivery hit a record of over $75 a barrel. The final trade on Friday of more than $75 hit American share prices.
The price surge has preoccupied the Group of Seven finance ministers and central bankers meeting in Washington this weekend. While high oil prices have yet to slow the global economy, which is achieving its best growth performance since the early 1970s, the fear is it could fuel higher inflation via so-called second-round effects on pay.
(Photo courtesy Benediktus Kok)
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