All eyes are on the markets this morning amid fears that oil prices could rise further.
On Tuesday, crude oil reached its highest price per barrel in the UK since 1990, hitting $39.08.
The US saw a record high, with prices peaking at $42 a barrel.
There are now fears petrol prices may hit £1 a litre in the summer – a move that could spark fuel protests similar to the ones that paralysed the country four years ago.
Last weekend’s terrorist attack in Saudi Arabia, which killed 22 people, and fears of further strikes were behind the rise.
The hostage drama in oil-rich Khobar, in which British executive Michael Hamilton was killed, has raised the prospect that al Qaeda could damage the kingdom’s ability to pump and export crude oil.
Downing Street appeared to rule out reversing its position on a 2p rise on fuel duty, despite fears that petrol price rises could spark mass protests similar to those of four years ago.
Prime Minister Tony Blair’s official spokesman insisted the premier would not intervene to halt price rises at the pumps.
He said Britain would join other countries urging the Organisation of Petroleum Exporting Countries Opec to increase production to fend off fresh increases in the price of crude.
Opec is meeting in Beirut on Thursday.
A new survey has shown that drivers would back fresh demonstrations against price increase.
From Sky News