Producers say $200 oil is possible as prices hit record three days running

The oil price soared to a record for the third day in a row yesterday, reaching $135 a barrel, more than double the price a year ago.

The surging cost of crude is increasing the pressure on petrol and diesel prices and led yesterday to renewed calls for the government to scrap planned rises in fuel duty.

The latest surge came as the CBI, the employers’ body, warned that an increasing number of manufacturers were planning to raise prices despite falling order books, adding to inflationary pressures and making further cuts in interest rates less likely.

Guardian