The price of oil jumped 8% at one stage on Thursday after Russian officials said they would discuss production cuts with Saudi Arabia and other Organisation of Petroleum Exporting Countries (Opec) at a meeting next month.
Inflation in Britain has turned negative for the second time this year, easing pressure on the Bank of England to raise interest rates from their record low.
Sharp falls in petrol prices are expected to have pulled UK inflation back down to zero in August, economists predict ahead of the latest official figures today.
Inflation in Britain has turned negative for the first time in more than half a century, giving a boost to household finances and bolstering expectations that interest rates will remain at a record low for the rest of this year.
Britain’s next government will face a tougher time than expected reducing Whitehall’s annual spending deficit, according to the International Monetary Fund, which said lower tax receipts and uncertainty surrounding the election would undermine growth forecasts.
The UK’s economic recovery lost steam at the close of 2014, official figures are expected to confirm this week.
The price of oil plunged to $55.91 per barrel on Wednesday as the US opened the way to crude exports and China produced another set of downbeat economic statistics that pointed to a global slowdown.