Oil price on the rise again

OilI been following the price of oil on the market for a while now. I’m not actually sure why, but I do.  Whilst it is still half of what is was during the peak or $140 a barrel, $70 dollars is getting towards the figure of $85 OPEC have suggested they would like to see as a longer term satisfactory price.

Does this mean an increase in petrol/diesel at the pumps?  Probably yes, but not as much as you might expect.  The GBP £ has been steadily increasing against other currencies, against the dollar it’s now 1.64.  Which reduces the impact of the world oil price rise.  But the Governments policy of bringing back the fuel tax increase, £0.02 per litre in April 2009 and a similar rise in September, means petrol will break the £1.00 / litre mark and should never drop below it again.  Will this help reduce the number of miles we travel?  Almost certainly no, there is actually little evidence to show that cost and travel (where private cars are involved) are that closely related.  We moan about the cost, but its still very cheap to drive say 10,000 miles a year.  Cheap for us, but expensive for this little old planet of ours.