Crude oil prices climb four per cent

25 February 2009

Crude oil prices climbed four per cent as the US stock market rebounded from recent falls.

Despite reports that Opec could take steps to reduce output further next month in a bid to rebalance the market and boost prices, values fell to less than $39 (£27) a barrel on Monday.

However, the oil market rose in line with equities on Tuesday as President Obama prepared to deliver a key speech to outline steps aimed at fighting off the recession in the US.

US crude oil for April delivery climbed $1.52 to settle at $39.52 a barrel, while London Brent crude for April closed at $42.50 after gaining $1.51.

Global head of commodities at JPMorgan Chase Lawrence Eagles told Bloomberg that the future of the oil market would depend largely on global demand.

"The oil market is finely poised right now, and the key determinant of its direction is the demand outlook," he said.

Home heating oil customers have seen the value of crude oil hover around $40 a barrel since the turn of the year and residents could move to stock up on supplies of the fuel while prices remain low.

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