Crude oil prices rise to four-month high

27 March 2009

Crude oil prices climbed on Thursday amid growing confidence about the potential for economic recovery in the US.

US crude closed at $54.34 (£37.90) a barrel, up $1.57, while London Brent crude gained $1.71 to settle at $53.46.

The rise to the four-month high in the value of US crude futures followed a sharp drop in prices the previous day after the publication of a US Energy Information Administration report which revealed that stockpiles of oil were rising.

Analysts attributed the upward movement in prices to some positive signs about the prospects for the US economy, which may lead to demand for oil products rising in the coming months.

Peter Beutel of Connecticut-based energy consultancy Cameron Hanover told Bloomberg that it was possible the "worst may be over".

However, he added that oil prices were unlikely to climb much higher in the short term, as an actual increase in demand would be required to support further rises.

That view may be reassuring to users of home heating oil who have benefited from falling fuel bills in recent times, with the average price in the UK now 35 per cent lower than six months ago.

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