OIL reached $100 a barrel this week, but a Liverpool stockbroker said yesterday there was little cause for panic.

Feb 21 2008 Liverpool Daily Post

Speculation that Opec would reduce output caused the main contract for light, sweet crude oil to finish at an all-time high on Tuesday of $100.01, having peaked at $100.10.

However, Carl Cross, investment director at the Liverpool office of investment managers Rensburg Sheppards, said things were still comparably better than they were in the 1970s.

He added: “Although oil prices have topped $100 in nominal terms, when you put it in real terms and compare it to the oil price shocks of the 1970s, we’re still far below shock levels.

“Of course, oil prices of this level impact the entire economy via higher input costs and inflationary pressures and company profits are consequently put under pressure.

“Fuel now comprises a significant propor- tion of overall house- hold expenditure and so this puts restrictions on broader consumer expenditure and high street spending.”