Why are some of the papers this morning reporting oil is $135 a barrel? Could it be because Downing Street is briefing on that basis ahead of Gordon’s meeting with the oil companies and they are too lazy to check? Crude oil for July delivery touched a record $135.09 a barrel last week – last Guido looked at it and wished he was short the market – it was trading at $126.35.

Gordon isn’t going to talk down the market, it will come down when the market believes recession will hit demand…

UPDATE : Larry Elliot, Guardian Economics editor reckons oil “has increased from $10 a barrel a decade ago to $135 today.” If he turns a few pages in his own paper he will see he is wrong.