Crude oil climbs six per cent

26 February 2009

Crude oil prices showed signs of recovery on Wednesday as values climbed to more than $42 (£30) a barrel.

This rise marks a second successive day of increases after crude oil prices jumped four per cent on Tuesday.

The oil market was boosted by reports of high compliance by Opec members with the supply cuts agreed by the cartel last year, as well as data from the US Energy Information Administration which revealed that crude inventories had grown slower than expected.

US crude oil for April delivery climbed $2.54 to close at $42.50 a barrel, while London Brent crude settled at $44.29 after a gain of $1.79.

Opec is reportedly planning to announce further production cuts at its next meeting in March, which could exert more upward pressure on crude oil prices.

Home heating oil customers may therefore look to stock up on supplies of the domestic fuel now to avoid being affected by any future increase in oil values.

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