Oil hits new London record price

The price of a barrel of oil has passed $119 for the first time in London.

Brent crude reached $119.07 a barrel. US light, sweet crude also hit a new high of $120.93.

Oil has been rising because of optimism about the US economy, as well as fears over possible supply disruptions in Nigeria and in northern Iraq.

Economists have predicted rising oil prices will potentially “snuff out” any recovery in the UK economy and in economies around the world.