Oil prices push past $70 a barrel

10 June 2009

Crude oil prices climbed by three per cent on Tuesday as hopes of an economic recovery pushed values above $70 (£42.60) a barrel for the first time since last November.

US crude for July delivery rose $1.92 to close at $70.01, while London Brent crude settled up $1.74 at $69.62.

The increase came on the back of a report by the American Petroleum Institute which revealed that US crude stockpiles fell by six million barrels over the past week, surpassing analysts' expectations.

Oil also gained support from a fall in the dollar against the euro, while the US Energy Administration raised its forecast for world demand in 2009 by 10,000 barrels on signs that the recession is easing.

The gains could prompt home heating oil customers to stock up on oil supplies now, with crude prices having climbed by as much as 30 per cent over the past month.

Indeed, Opec secretary general Abdullah al-Badri told the Reuters Global Energy Summit last week that the price of oil could reach as much as $80 a barrel by the end of this year.

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