Crude oil prices top $65

29 May 2009

The price of crude oil surged beyond $65 (£40.50) a barrel for the first time this year on Thursday after Opec members opted against implementing any cut in production targets.

US crude for July delivery settled at $65.08 a barrel, up $1.63 on the previous day, while London Brent crude climbed $1.89 to settle at $64.39 a barrel.

Values have nearly doubled since the beginning of 2009 as the market was boosted by hopes that the world economy could soon begin to recover, prompting Opec to hold output steady.

Saudi Arabian oil minister Ali al-Naimi told Reuters: "The price is good. The market is in good shape. Recovery is under way. What else could we want?"

The decision to keep production unchanged could be good news for home heating oil customers, who may well have seen crude prices rise further if Opec had decided to carry out further cuts.

Mr al-Naimi said earlier this week that the recent rally in the oil market could see prices reach as much as $75 a barrel by the end of this year.

Click here for a home heating oil quote.