The price of oil on international markets is surging this morning after yesterday's surprise announcement by OPEC and Russia that they were reducing daily output by more than 1 million barrels.
Brent crude traded above $86 this morning, rising as much as 8%. This also wipes out the drop in crude prices this year which had seen Brent drop as low as $70.
In the immediate term, this weekend's move probably wipes out any hopes for a substantial drop in the price of diesel over the coming months. The move by OPEC shows that the cartel is willing to do whatever it can to keep oil prices high.
Without lower oil prices, there is no chance of lower diesel prices. Goldman Sachs, the global investment bank, said this morning that it now sees Brent ending the year at around €95 a barrel.
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