Oil prices are on track to reach $100 a barrel this month for the first time in 2023 after surging by almost 30% since June, after Russian and Saudi Arabian production cuts and rising demand from China.
Brent crude, the oil price benchmark, rose to a 10-month high last week of almost $94 a barrel, up from $72 a barrel at its lowest point in June – heading for its biggest quarterly increase since Russia’s invasion of Ukraine.
The lighter US crude, West Texas Intermediate, has climbed from $67 a barrel to $90 a barrel over the same period. Both benchmarks were up by about 4% on the week.
Petrol and diesel prices in the UK have begun to rise modestly, adding 10p to the cost of a litre since June. The motoring organisation RAC said the average price of unleaded fuel was £1.52 a litre on Friday, up from £1.43 in June.
In the US, where tax makes up a smaller proportion of the price at the pumps, gasoline has jumped by more than 10% to $3.90 (£3.15) a gallon (3.8 litres).
An increase in demand for flights in the US, Europe, and more recently China have spurred an even larger increase in jet fuel prices tracked by the Energy Information Administration (EIA). Prices averaged $3.07 a gallon at the end of August, up by 50% from a recent low of $2.05 in early May.