Oil price drops below $100 a barrel in boost to UK motorists

Brent crude, the most closely-watched benchmark, hit $99.95 in trading on Monday morning, following disappointing Chinese economic data.

Although Chinese exports rose by 9.4pc on a year-by-year basis in August, imports fell 2.4pc, in a further sign of a potential economic slowdown in the world's second biggest economy.

Although petrol in the UK is heavily taxed, prices do tend to fluctuate in response to oil. A supermarket price war has recently pushed prices to a three-and-a-half-year low.

Oil prices have now fallen for three consecutive days. A weak US jobs report on Friday led to a 1pc fall despite continuing tensions in the Middle East.

The fall came despite increased fears about the uncertainty generated by Scottish independence. The pound fell against the dollar on Monday to a 10-month low, while stocks of companies exposed to Scotland also fell.

According to a survey from Reuters , however, the current low prices may be unsustainable. The survey said the average oil price needed to sustain the budgets of the major oil producing countries that make up the OPEC alliance is $106.

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