China, the world's second-largest consumer of oil, is to raise the price of petrol and diesel by 18%.

The move, which could depress demand for oil from the fast-growing economy, caused the price of crude to fall $4.

US light, sweet crude fell to $132 on the news, along with confirmation from Saudi Arabia that it will boost the level of its oil production.

China's fuel subsidies have helped support the country's growing demand for the commodity.

Retail fuel prices will increase by 1,000 yuan ($145.40; £73.80) a tonne from Friday, while aviation fuel will rise by 1,500 yuan a tonne. ... Read full article