G8 plans oil price action as Middle East chaos mounts

The west’s leading industrial nations will this weekend seek to calm the world’s energy markets after fears of an escalation of violence in the oil-rich Middle East sent the cost of crude oil to an unprecedented level.

With the AA warning that unleaded petrol could hit

The move came as crude oil rose at one point to almost $78.50 a barrel in London before profit-taking saw it ease back to $77.50 a barrel in late morning trading in New York. Dealers warned, however, that the conflict between Israel and Hizbullah guerrillas could lead to a new surge in oil prices, sending the cost of crude above $80 a barrel.

“While it is not unusual for flare-ups in Israeli-Arab tensions to cause jitters in the oil market, the latest attacks break new ground, not only by their scope, but also because of the suspected linkage with the Iranian nuclear dispute, raising the threat of broader regional escalation,” said Antoine Halff, an analyst at Fimat Energy Research.

The Guardian