Crude oil prices edge higher on economic hopes

19 June 2009

Crude oil prices edged higher on Thursday amid rising hopes that the worst of the economic crisis may be coming to an end.

Latest figures from the US showed that the country's leading economic indicators posted their biggest increase in five years in May, while unemployment also dropped.

The market was also boosted by militant activity in Nigeria's oil-rich Niger Delta, where Royal Dutch Shell was forced to halt some production after one of its pipelines was attacked.

This helped raise concerns about supply from the region and offered further support for oil prices, which ended the day's trading above $71 (£43.37) a barrel.

US crude for July delivery gained 34 cents to settle at $71.37 a barrel, while London Brent for August delivery rose 21 cents to close at $71.06 a barrel.

Home heating oil customers may see prices continue to hover around the $70 a barrel mark over the coming months as the recession begins to ease.

ConocoPhillips chairman James Mulva told Reuters that a price of around $70 to $80 a barrel is enough to encourage investment without hampering any potential economic recovery.

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