Oil prices to head even higher says Opec chief

The secretary-general of Opec said yesterday that oil prices could rise even higher than the present record level of $117 a barrel.

Speaking at the start of the biannual conference between oil-producing and consumer countries in Rome, Abdullah al-Badri said that factors other than supply and demand, particularly the weakness of the US dollar, were pushing oil prices higher.

Many analysts expect oil to rise above $120 a barrel by the summer. Every $2 increase in the cost of oil adds about 1p to a litre of petrol at the pump in Britain

Times of London