PETROL and domestic oil prices are likely to rise gradually this year despite the world’s biggest oil producers failing to increase prices in the short term by capping production, a market analyst has said.
Motorists have recently enjoyed one of the longest periods of cheap fuel for years, including a significant drop in forecourt charges in February when the global price of crude oil fell to a ten-year low.
But this weekend the Organisation of the Petroleum Exporting Countries (Opec) and other producers met in Qatar to try to agree that average daily crude oil production over the coming months would not exceed levels recorded in January.
The group had hoped that by capping production they could manipulate and inflate the price of oil to combat an oversupply seen in recent years, however, the talks, which many commentators described as doomed from the start, failed to secure an agreement.
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