Oil price spike: UK motorists erupt in fury as oil hits £88 a barrel | United Kingdom | New

With Boris Johnson’s resignation likely to lead to a political vacuum, the agony at the pumps is set to continue. There were also concerns that the 5p reduction in fuel duty announced in the spring statement by then-Chancellor Rishi Sunak was not passed on to motorists by retailers.

Brent crude futures rose $2.37 (£1.97), or 2.3%, to settle at $107.02 (£88.96) a barrel on Friday.

West Texas Intermediate crude rose $2.06 (£1.71), or 2%, to settle at $104.79 (£87.11) a barrel.

However, Brent saw a weekly decline of around 4.1% and WTI a loss of 3.4%, after the first monthly decline since November.

Prices crashed on Tuesday, when Brent’s $10.73 (£8.92) drop was the contract’s third biggest daily decline since it began trading in 1988.

This partial weekly decline was influenced by the worries of investors concerned about the possibility of a recession which would affect demand.

As central banks around the world raise interest rates to control inflation, there are also fears that rising borrowing costs could hurt growth.

US economic data showed a better than expected performance in terms of job creation, which could potentially lead to a surge in demand and therefore higher oil prices.

However, Price Futures Group analyst Phil Flynn said it could be a “double-edged sword” from an industry perspective.

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Oil prices soared in the first half of 2022, particularly after the Russian invasion of Ukraine as investors became concerned about supply issues.

Brent hit a post-invasion high of $147 (£122).

Stephen Brennock of oil broker PVM said that despite economic concerns the market was still “bullish”.

He said: “Economic concerns may have sent oil prices soaring this week, but the market is still sending bullish signals.

“That’s because the supply crunch is more likely to intensify from this point than ease.”

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