Motorists to feel pinch as oil prices climb. 18/01/2006. ABC News Online

Australian motorists and industry face further pain as geo-political tensions unsettle the market and push oil prices higher.

Commodity trading has resumed in New York after a long weekend in the US and the spot price of West Texas crude oil has raced up $US2.50 to $US66.36 a barrel.

The market has concerns about potential supply disruptions as Iran digs in its heels over its nuclear program and there have been more attacks on oil facilities in Nigeria.

Commonwealth Bank commodity analyst Tobin Gorey says there are implications for the economy broadly and the hip pocket of motorists directly.

"Next time they fill up, they'll definitely be noticing a price increase," he said.

Mr Gorey says Iran's nuclear ambitions are sending jitters through the market.

"The Iran situation is still spooking the oil market," he said.

"We're talking about a producer that has about 5 per cent of global output and the threat of that not being there in the market in a very tight market is a worry.

"Plus there's also a military threat to a lot of other crude oil that travels in the sea lanes around that area."

Mr Gorey says he expects prices to remain elevated for some time and that this will put pressure on household budgets.
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