Oil prices soar to $135 a barrel

Oil prices hit $135 a barrel yesterday as news US stockpiles had fallen to 5.4 million barrels stoked fears of a supply shortage.

Fears are now mounting oil prices could be pushed higher to $150 in the near-term – and even to $200 over the next couple of years.

The upshot for consumers is the price of petrol and diesel should rise further.

The AA estimates recent petrol hikes will mean a 304-mile journey this bank holiday weekend will cost 29 per cent more than a year ago for diesel drivers and 17 per cent for more those buying unleaded.

Data from the motoring organisation show in the past month unleaded prices have risen by 4.5 pence per litre (PPL) to 112.6ppl in the past month. Diesel prices rose by 6.8ppl to 124.2ppl.

London recorded the highest price for unleaded at 113.3ppl followed by the south-east at 113.1ppl. Yorkshire and Humberside again recorded the lowest price for unleaded at 111.6ppl. Wales recorded the highest diesel price at 124.7ppl, while Yorkshire and Humberside had the cheapest diesel at 123.4ppl.

Ladbrokes is now offering even money on oil reaching $150 a barrel and 4/1 for Brent Crude hitting $200.

Nick Weinberg, Ladbrokes spokesman, said: "It's difficult to see the present rally stalling in the immediate future."