Oil prices ended the week at over $139 a barrel following a two-day rise of over $16. Whilst some analysts are saying the increase is merely due to speculation and prices will soon fall, the majority of commentators do not believe this to be the case. In fact the cost of oil looks likely to pass the $150 a barrel marker over the next month and could go all the way to $200 a barrel over the coming months.

The news has sparked concerns that although the economy is slowing, increasing inflationary pressures on oil, fuel and food look set to drive interest rates higher. Whilst the UK kept rates on hold, the European Central Bank has given a strong hint that it will push up rates. All in all it is not a good time for the economy and the consumer.

The two day strike at Grangemouth has sent US light crude oil prices up to a high of $119.40, down slightly from its peak of $119.93. The strike at the oil refinery has led to the closure of the Forties pipeline which provides around a third of the UK’s oil output. In turn this has resulted in the loss of production of around 700,000 barrels pe day from 70 platforms.

Whilst the strike may only be for two days ti will take a full day to re-open the pipeline and up to a week before Grangemouth is again operating at full capacity.

Brent Crude ended the week at $108.75 a barrel which was just below its intra-day trading high of $109.98 on Thursday. The highs come as global economic concerns persist and investors turn to oil as a shelter from the volatility in stocks.

US light crude ended the week at $110.14, whilst up on the day is a little way down from its record high of $112.21 seen on Wednesday.