Any extended rise in energy prices raises the possibility of higher petrol prices and increased gas and electricity bills, pushing up the rate of inflation. So far this year, weaker demand from China and ample supply from Saudi Arabia have acted to hold down oil prices.

Oil futures booked solid weekly gains, boosted by the Federal Reserve’s large interest-rate cut and a renewed rise in tensions in the Middle East.

Oil prices settled lower on Friday but recorded a second straight week of gains, garnering support from a U.S. interest rate cut and a dip in U.S. supply. Brent futures settled down 39 cents, or 0.52%,

Crude prices surged past $70 this week, driven by a Federal Reserve rate cut and a decrease in US oil supplies.