Oil prices hit fresh six-month highs

27 May 2009

Oil prices rebounded from losses earlier in the week to reach their highest level in more than six months on Tuesday.

US crude settled at $62.45 (£39) a barrel, up 78 cents on the previous day, marking its highest closing point since November 5th. London Brent crude rose $1.03 to settle at $61.24.

Prices were boosted by an unexpected upturn in US consumer confidence, which reached its highest level since last September, according to a report by the Conference Board.

This helped bring about a surge in the stock market, which in turn resulted in a pick up in oil prices as traders became more optimistic about the future of the global economy.

Home heating oil customers have now seen crude prices rebound from lows of less than $34 a barrel at the beginning of this year, but experts this week called for an end to such volatility in the market.

Group of Eight energy ministers agreed during a meeting in Rome that prices must be kept stable in order to encourage new investment in oil projects and avoid any future price spike.

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