Oil price soars to three-year high

Oil prices hit a three-year high as the recovery in the global economy continued to boost demand.

Brent crude rose to $86.70 a barrel – the highest level since October 2018 when it peaked at $86.74. The last time it was higher was in 2014.

The surge in the price of oil – which fell below $20 a barrel last year as the pandemic hammered demand – has pushed up the cost of fuel on British forecourts.

Petrol hit an all-time high of 142.94p a litre on Sunday, hitting motorists in the pocket. ‘The global energy supply crunch continues to show its teeth, as oil prices extend their upward march this week, a result of traders pricing in the ongoing rise in fuel demand, which amid limited supply response is depleting global stockpiles,’ said louise Dickson, senior oil markets analyst at energy research firm Rystad Energy.

Goldman Sachs said a strong rebound in oil demand could push Brent crude prices above its year-end forecast of $90 a barrel.