Economic outlook prompts slide in oil prices

21 April 2009

Continued concerns over the state of the economy and short-term demand for crude oil prompted prices to plunge by more than eight per cent on Monday.

Home heating oil customers are likely to welcome the latest dip, which saw values fall to less than $46 (£31.69) a barrel.

US crude for May delivery settled at $45.88, down $4.45 on the previous day, while London Brent crude for June fell by $3.49 to close at $49.86.

The decline in the market came on the back of a rise in the strength of the dollar, as well as renewed caution among investors concerning the future of the global economy.

UK residents might look to take advantage of the fall in the market to purchase supplies of the fuel, with many experts tipping prices to rise again as summer demand begins to pick up.

Indeed, Algerian energy and mines minister Chakib Khelil said in a television interview this week that many people are stocking up on oil now with the intention of reselling it later because they know prices will go up, Reuters reported.

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