Crude oil prices reach new six-month highs

21 May 2009

Crude oil prices climbed to six-month highs of over $62 (£39) a barrel on Wednesday, boosted by new data which showed that US crude inventories are beginning to subside.

The US Energy Information Administration's weekly report showed that crude stockpiles fell by more than 2.1 million barrels over the past seven days, surpassing the expectations of most analysts.

This helped extend oil's recent gains as US crude for June delivery rose $1.94 to settle at $62.04 a barrel, while London Brent crude climbed $1.67 to close at $60.59.

Prices had already received a boost earlier in the week following news that fires had broken out at two major US refineries, causing a slowdown in production.

Values were also bolstered by another strong day on the stock market as traders continue to look to equities for signs of an economic recovery.

The upward trend in crude prices means home heating oil customers might look to purchase supplies of the domestic fuel sooner rather than later to avoid any potential increase in costs.

According to the International Energy Agency, prices could surge over the next few years due to the current drop-off in energy investment brought about by the economic crisis.

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