Crude oil prices edge towards $54

24 March 2009

Hopes of an economic turnaround in the US prompted crude oil prices to rise towards $54 (£36.83) a barrel on Monday.

The US government announced plans to buy toxic assets of up to $1 trillion from the nation's banks in a bid to help kick start lending, creating renewed optimism in the stock market.

US crude rose $1.73 to settle at $53.80 a barrel - its highest point this year - while London Brent crude climbed $2.25 to close at $53.47 a barrel.

Prices have now jumped by more than 30 per cent this month and the hike could be felt by residents in the UK, with rising crude values likely to lead to an increase in the cost of home heating oil.

Homeowners might therefore look to stock up on supplies of the domestic fuel now in order to avoid the effect of any further price rises.

According to a report this week by analysts at Bank of America subsidiary Merrill Lynch, crude oil prices are likely to average around $52 a barrel this year, before rising to $62 a barrel in 2010.

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