US crude oil has hit a seven-year high on Wednesday morning amid rising demand.
Brent Crude is now $83 per barrel, which is a three-year high whilst US crude hit $79.40 a barrel, which is the highest since 2014.
The increase in oil prices is likely to drive up petrol prices. Simon Williams, the RAC’s fuel spokesperson, said:
“[The trend] looks likely to spell further misery for drivers at the pumps as we head towards Christmas … If this were to happen we could see the average price of unleaded hit a new record of around 143p per litre. Diesel would shoot up to 145p, which is only 3p off the record high of 147.93 in April 2021.”
Commenting on the increase of crude oi prices, Naeem Aslam of Think Markets, said: “Oil prices in the United States have climbed to their highest level since 2014, rising for the last 5 sessions. Crude oil has gained support from uncertainty regarding energy supplies as supplies of coal, natural gas, and crude appear to be tighter.”
“Monday’s OPEC meeting only exacerbated the issue as the group conveyed no significant rise in oil production and decided to go on with its already existing timeline to avoid any major repercussions caused by another wave of coronavirus. However, the cartel may be pushed into a corner if demand continues to rise, leaving no option but to ramp up production.”