Brent crude oil price falls below $50 for first time since 2009

The price of Brent crude oil prices has fallen below $50 (£33) a barrel for the first time since May 2009.

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RAC warns Cameron's fuel comments may 'confuse motorists'

The RAC has warned that comments from David Cameron that fuel prices should fall "further and faster" may end up confusing drivers and stoking unrealistic expectations.

Speaking at Prime Minister's Questions today, Mr Cameron said: "We're beginning to see prices fall quite substantially at the pumps but...we want to see that go further and faster."

The Harvest Energy petrol station selling unleaded for just under £1 a litre. Credit: Richard Vernalls/PA Wire

His comments came as it emerged a petrol station in Birmingham is now selling unleaded for just 99.7p a litre.

RAC fuel spokesman Simon Williams criticised the remarks, saying:

Frankly, there is a danger that this sort of off-the-cuff comment will confuse motorists, who at the moment are enjoying price reductions at the pump on at least a weekly basis - the likes of which many people will not remember seeing before. It also risks raising unrealistic expectations among drivers of the extent to which prices can fall still further.

Mr Williams said despite falling global oil prices there is "a limit to which further falls can benefit pump prices".

Brent crude oil price falls below $50 for first time since 2009

Brent crude oil prices have fallen below $50 a barrel for the first time since May 2009 Credit: Reuters

The price of Brent crude oil prices has fallen below $50 (£33) a barrel for the first time since May 2009.

Benchmark Brent crude futures fell more than a dollar to $49.92 a barrel this morning, later rising back above $50.

Analysts said that further price falls were likely because of an excess of supply and sluggish demand

Shippers, airlines and motorists stand to gain from the fall.

Bank of England governor Mark Carney said last month that the oil price slide was a "net positive development" for the UK.

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Energy UK: Price cuts are being passed on to consumers

Energy UK insisted energy bills were coming down. Credit: Katie Collins/PA Wire

The body that represents the UK energy industry insists that falls in global oil prices are being passed on to customers.

Energy UK chief executive Lawrence Slade said:

When people shop around they can easily find deals that are over a hundred pounds cheaper than this time last year and in line with cuts in wholesale energy prices

Osborne announces review of fuel price impact

Chancellor George Osborne has announced a review of the impact of items such as fuel bills, air fares and the forecourt price of petrol.

Mr Osborne welcomed a move by four major supermarkets to cut 2p from the cost of a litre of petrol as the slump left a barrel of Brent crude trading at about 52 US dollars a barrel, the lowest since May 2009, but said more action was required.

After leading a Cabinet discussion on the issue he tweeted that it was "vital" that lower wholesale prices were passed on to consumers.

A Treasury spokesman said: "The Government is conducting studies of industries like the utilities and the airlines. We are examining if any action needs to be taken."

Alexander: Families must benefit from oil price fall

Families must benefit from the fall in oil prices in their heating bills and airline tickets, Danny Alexander has told ITV News.

Mr Alexander's comments come after oil prices tumbled to their lowest level in nearly six years.

Speaking to Business Editor Joel Hills, the Chief Secretary to the Treasury said: "The fall in oil price is a benefit to most of the UK economy provided that the benefits are passed on at the pumps, in the cost of holidays and in the cost of heating homes."

Stock market jitters as the price of crude oil drops

The cost of crude oil has hit its lowest level for five years prompting another volatile day on the world's stock markets.

ITV News' Consumer Editor Chris Choi reports on the pros and cons of falling oil prices.

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