Warning record oil prices threaten Europe recovery

Crude oil surged to record levels in euro and sterling terms yesterday, adding to fears European economies could slump back into recession.

Brent crude in euros rose to €93.55 per barrel, surpassing highs seen during the oil price surge of mid-2008, the Times reports. Oil also reached new highs in sterling at over £79 a barrel. Analysts said the rising cost of oil could hit consumer spending power and drag on recovery. "There are a lot of headwinds for the consumer - this is the last thing they need," Marc Ostwald, a strategist at Monument Securities, told the Times. The cost of crude is being driven by political uncertainty, in particular concerns over Iran's nuclear programme. European buyers have been cutting back p...