Oil price soars

The US wants Opec to turn on the taps

The price of a barrel of crude oil hit a six-month high late on Wednesday, despite hints from Saudi Arabia that it would raise production.

The price of a barrel of crude oil closed at $33.32 in New York, its highest level since 7 March.

Earlier on Wednesday, Saudi Arabia's Supreme Petroleum Council said it would work with other members of Opec - the Organisation of Petroleum Exporting Countries - to increase output of oil.

But fear remains that there will not be enough oil to meet US demand for heating oil in the coming winter.

Oil shortage

High crude prices have pushed up US gasoline prices substantially, prompting consumer protests.

Heating oil prices are at their highest levels since the 1991 Gulf War.

Data released earlier on Wednesday showed that US crude oil stocks grew last week by two million barrels, still 32 million barrels less than last year.

Opec ministers are next due to meet on 10 September and are expected to increase the organisation's production by at least 500,000 barrels a day.

This would be in line with an informal agreement jointly to lift or cut output by that amount if prices remained outside the $22-28 a barrel range for 20 consecutive working days.

Some other leading producers, including Venezuela, are adopting a tougher stance towards consumer governments, saying they have contributed to high prices through market speculation, increased taxes and costly environmental regulations.