Oil prices fall on weak equities

29 June 2009

The price of crude oil fell back below $70 (£42.46) a barrel on Friday as a weak day on the US stock market helped reverse the previous day's gains.

US crude for August delivery settled down $1.07 at $69.16 a barrel, while London Brent crude fell 86 cents to close at $68.92 a barrel.

Oil prices had rallied earlier in the week after rebel attacks on facilities and pipelines in Nigeria helped disrupt supply.

However, the gains were cancelled out as the pressure from weak equities and continued concerns over a lack of global demand for oil helped push prices lower.

The dip may come as welcome news for home heating oil customers, who have seen prices more than double since January when market values stood at less than $33 a barrel.

It follows claims by Olivier Blanchard, chief economist at the International Monetary Fund, that the recent oil price rally is likely to be short-lived unless there is a major recovery in market fundamentals.

Click here for a home heating oil quote.