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Oil deadlock sends prices surging

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With oil prices continuing to surge, there's never been a better time to save money on your car insurance.

The rise comes after the Organisation of the Petroleum Exporting Countries (Opec) failed to back a rise in supplies which might have given respite to drivers hard-pressed by high prices at the pumps.

The cartel, which represents about 40% of the world's oil production, had been expected to step up output to help calm prices, which are having a knock-on effect on the world's economy.

But the group failed to reach agreement in Vienna, with more discussions due in three months' time. Oil prices had fallen before the meeting but after it they surged past 100 US dollars per barrel, with Brent crude up to 118.30 dollars per barrel.

With motorists already paying 136p per litre for unleaded petrol, the AA says an output boost would have helped matters - although prices had not yet fallen since wholesale prices fell after March. Iran wants to keep the price above 100 US dollars a barrel, as opposed to Kuwait, the UAE and Saudi Arabia, who want it between 70 and 80 dollars to reach demand and facilitate the global recovery.

© Press Association 2011