Crude oil price falls below $63

8 July 2009

The price of crude oil fell to less than $63 (£39.15) a barrel on Tuesday on concerns that a rebound in the global economy could be further away than first thought.

US crude for August delivery fell $1.12 to settle at $62.93 a barrel, while London Brent crude slipped 82 cents to close at $63.23 a barrel.

The losses came despite a report by the US Energy Information Administration which saw the group raise its global oil demand forecast by 170,000 barrels a day.

Crude prices have retreated from 2009 highs of more than $73 a barrel in recent weeks after a series of weak economic data and continued job losses sparked fears that an economic recovery is still some way off.

The dip in the market will come as welcome news for home heating oil customers, who may be tempted to stock up on supplies of the fuel now in order to avoid the effects of any potential increase in crude prices.

This comes after UK prime minister Gordon Brown this week called for greater cooperation between consumer and producer countries to put a stop to the recent oil price volatility.

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