Mixed day for oil prices

17 July 2009

There was another mixed day for oil prices on Thursday as a rebound in the stock market helped boost values, despite continued uncertainty over future demand.

US crude edged slightly higher to settle at $62.02 (£38) - up 48 cents on the previous day - on the back of a late rally on Wall Street.

However, London Brent crude slipped 34 cents lower to settle at $62.75 a barrel.

Prices fell sharply earlier in the day, before new data showing strong economic growth in China during the second quarter of 2009 helped boost investor confidence.

This, coupled with the late surge on Wall Street, saw prices recover again late in the day - but analysts warned that oil market fundamentals are still far from strong.

Nimit Khamar, analyst at the Sucden brokerage, told AFP: "Oil demand still remains weak and a large amount of uncertainty still remains over the timing and rate of global economic recovery."

Home heating oil customers saw prices rise to more than $70 a barrel last month on hopes that the worst of the recession may be over, only to fall back towards $60 in recent weeks.

Click here for a home heating oil quote.