Oil prices fall further on demand concerns

17 June 2009

The price of crude oil slipped further from recent eight-month highs on Tuesday as concerns over the faltering world economy continued to weigh heavy on the market.

A fall in the strength of the US dollar had helped push prices up towards $72 (£44) a barrel in early trading, before fresh demand concerns brought values back down towards the $70 mark.

The dollar also firmed later in the day, making the price of crude oil more expensive for holders of other countries and exerting further downward pressure on prices.

US crude for July delivery fell 15 cents from the previous day to end the session at $70.47 a barrel, while London Brent crude remained unchanged at $70.24.

The dip may come as welcome news for home heating oil customers following several weeks of rising prices.

According to James Mulva, chief executive of global oil firm ConocoPhillips, values have risen faster than expected in recent months and are now trading "ahead of the actual supply and demand situation", Reuters reports.

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