Crude oil climbs towards $73

12 June 2009

The price of crude oil continued to rise on Thursday as new figures suggested that world energy demand could begin to increase over the summer months.

Values soared towards $73 (£44.19) a barrel on the back of the International Energy Agency's decision to revise upward its outlook for global oil demand for the first time since last August.

The decision, which comes just days after the US Energy Information Administration also raised its oil demand forecast for this year, helped boost hopes that the world economy is on the verge of recovery.

US crude for July delivery settled up $1.35 at $72.68, while London Brent crude gained 99 cents to close at $71.79 a barrel.

The gains are likely to come as bad news for home heating oil customers, who have seen prices rally in recent weeks on hopes that the worst of the recession is now over.

However, according to UK chancellor Alistair Darling, oil could prove "a huge problem" in the coming months, with rising prices having the potential to derail any economic recovery, the Financial Times reports.

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