Fuel prices set to rise

Fuel prices are set to rise after oil cartel OPEC said it won't increase production until the price of oil has risen to $100 (£60) a barrel.

The news was revealed by Kuwaiti Oil Minister Sheikh Ahmed al-Abdullah al-Sabah. Oil is currently trading at around $71 (£43) a barrel.

Sheikh Ahmed said that production wouldn't increase with oil at $75 (£45) a barrel, “but if it reaches $100, maybe.”

The price of crude oil has risen around 60 per cent this year, after plunging as demand dropped off during the worldwide economic crisis.

Sheikh Ahmed said that oil prices have increased because investors have bought crude oil as a hedge against a weakening US dollar, not because demand is rising.

“The numbers, in terms of economic recovery, are not with the rise of oil,” he said, outlining why Opec was cautious about raising production.

Opec supplies about 40 per cent of the world's oil.