Oil prices hit 2 and a half year high in blow for motorists.

Petrol Prices continue to rise

Petrol Prices continue to rise

Motorists were dealt another double blow, as oil prices hit a two and half year high this week, and the dollar continued to weaken against the pound.

With car insurance already increasing every year, petrol increases are the last thing every motorist wants, but with the latest double blow, the cost at the pumps is only going one way.

Brent crude now costs $126 a barrel, and with oil sold in US dollars, the strengthening of the pound against the dollar makes them even more expensive in British terms.

Interest rates in Europe rose this week from 1% to 1.25% and with the UK expected to follow suit in the next couple of months the US look set to fall behind with no signs of an interest rate hike in the States.

With both the pound and the euro looking a better investment opportunity on the back of the increases, the dollar has weakened, with investors looking elsewhere to make money.

The Oil prices have soared on the back of the earthquake in Japan, and then the fighting in Libya, which as the 17th largest oil producer in the world, has had a direct impact on world oil output.

Whilst other countries claim to be able to make up the difference the price continues to rise as demand increases across Aisa.

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