Crude oil edges up on demand hopes

28 May 2009

Crude oil prices edged towards $64 (£40.32) a barrel on Wednesday as the market continued to be buoyed by optimism that the worst of the economic recession could be over.

Values have rallied in recent months to climb from lows of close to $30 a barrel at the beginning of 2009, with some experts predicting that this upward trend is likely to be maintained.

Indeed, Saudi Arabia's oil minister Ali al-Naimi told reporters ahead of an Opec meeting in Vienna this week that oil prices will rise further as the economy recovers - and could hit $75 a barrel this year.

He added that energy demand was already beginning to pick up, meaning there is no need for Opec to cut production in a bid to help boost prices further.

Wednesday's trading saw US crude settle up $1 at $63.45 a barrel, while London Brent crude rose $1.26 to close at $62.50.

Home heating oil customers might wish to purchase supplies of the domestic fuel sooner rather than later in order to avoid the effects of any potential surge in crude prices over the coming months.

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