The price of oil hits three-year high of $70

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The price of oil reached $70 a barrel for the first time since the month of December 2014.

The price of Brent has increased after the members of Opec, the cartel of 14 oil-producing countries, which accounts for 40% of global production, said it would continue to limit supplies.

The RAC, the conduct of the group, has warned that rising oil prices could lead to an increase in court costs for motorists.

However, the AA said that drivers would be better if the supermarkets have taken up their fuel price war.

Suhail al-Mazrouei, the united arab EMIRATES oil minister of Opec and president, said that he was committed to limit the production until the end of the year.

Last year, Opec and other countries including Russia said that they were going to extend an agreement to reduce production to support oil prices, which have dropped below $ 50 a barrel when the agreement has been concluded in 2016.

On the Thursday of the ascension was also supported by a surprise fall in US oil stockpiles.

The US Energy Information Administration on crude inventories have fallen by nearly five million barrels of 419.5 million barrels during the week of 5 January. U.s. production also fell by 290 000 barrels per day to 9.5 million.

US oil rose 1.5% to $64.51 a barrel.

The RAC said the increase in oil prices were likely to have “a ripple effect in the front-court due to the increase in causing the wholesale price of gasoline to increase”.

The price of unleaded gasoline has already increased by nearly 5p from November to 121.27 p per litre, while diesel prices have jumped 3p to 123.97 p during the same period.

He said that the cost of filling an average 55-litre family car was now £66.69 for petrol and £68.18 for diesel engines.

A RAC spokesman said: “If oil stays at this level of the pump, price increases will be almost inevitable.

“With the homes across the country continue to suffer the costs of Christmas, this is not the beginning of 2018 anyone would have wanted. It could also have an impact on the business and contribute to inflation.”

But the AA, said: “Oil at $70 per barrel has yet to threaten a pump price spikes on the UK forecourts.”

A AA, said the spokesman of the price of gasoline has increased in recent weeks after the supermarkets put their fuel price war.

According to data from the AA, supermarkets lowered the price of gasoline several times in the last year to a low of 111.8 p a litre in July.

While the AA has conceded that the wholesale prices have increased, he added: “The current price rise is more a reflection of fuel, which reduces price competition in supermarkets.”

In December, gasoline was an average of 117.6 p a litre in the supermarkets and 121.9 p ea l to other points of sale.