Alarm bells are ringing as oil prices reach yet new highs. As trading opened in London, Brent Crude surged to over 74 dollars a barrel its eighth consecutive session to mark a new peak. Supply fears are pushing up prices spelling bad news for motorists filling up.
“It’s going to become a luxury product. I think we will keep buying petrol, we have to. We will be forced to use it,” said one French consumer. For the International Energy Agency’s executive director Claude Mandil there is serious cause for concern: “I am sure it has an impact on economic growth. Sometimes I hear people saying, ‘That’s not true, look at the world economy, it’s still growing,’ which is true. But you never know what the world economy would been like with lower prices.” Oil costs have tripled since 2002 and analysts see few signs of flagging. Tension over Iran has kept prices on the boil and analysts fear a further escalation will eventually disrupt shipments from the world’s fourth largest oil exporter.