Articles by Ursula Heger

Motoring groups have warned retailers against price gouging in the wake of the record $US108 ($117) a barrel, with Queensland's bowser prices not expected to rise above $1.40 a litre at Thursday's weekly peak.Just a year ago crude oil was trading about $US60 a barrel.“We are not expecting to see any immediate spike in the price of fuel here in Queensland as a result of any rise in north American prices,” RACQ spokesman Gary Fites said.“You will see the bulk of retailers try about $1.39 as a weekly peak.”But Fuel Trac general manager Geoff Trotter said motorists could expect more pain over Easter, as worldwide crude price rises coincided with the bowser price peak.“If this most recent $US2.00-a-barrel price rise was to roll through, it would take at least seven days and it would hit $1.40 a litre next Thursday,” Mr Trotter said.“They normally peak on a Thursday and drop away on a Friday, but because it is Easter (fuel retailers) may try to hold it through Friday and Saturday.”Wavell Heights mother Fiona Azzarello said she was feeling the strain of the rising cost of living, spending almost $100 to fill up a week.“I have three young kids and it can be tough,” she said. “With everything going up like the groceries and the petrol — and when you have to run errands and pick things up for the kids — it can get quite difficult.”Market watchers believe the price of crude is largely being driven by speculators and institutional investors, attracted by a weak US dollar and seeking a safe haven from the turmoil in world financial markets.Analysts are divided as to which direction oil prices will head in the medium term. Some believe that if US growth stays stalled and fund managers are less aggressive we could be in for a sharp price reversal, while others see sustained high prices.Investment house Goldman Sachs estimates average prices of $US95 a barrel this year, $US105 a barrel next year and $US110 a barrel for 2010, with a potential peak of $US135 a barrel — but it hinted that prices could go even higher.It also warned that a rebound in US economic activity coupled with demand from countries such as India and China — or a major disruption to supply — “could lead to $SU150-$US200 a barrel oil prices.”