Oil prices edges towards $64 a barrel

21 July 2009

Crude oil prices rose slightly on Monday to extend last week's six per cent gains and edge towards $64 (£38.86) a barrel.

US crude for August delivery climbed 42 cents to close at $63.98 a barrel, while London Brent crude settled up $1.06 at $66.44 a barrel.

The market was supported by positive corporate earnings reports from several major US firms, which helped fuel economic optimism and boost equities.

Meanwhile, a fall in the value of the dollar made oil more appealing to foreign traders and increased demand further, pushing prices up.

Home heating oil customers have now seen crude prices rise from less than $60 a barrel since last Monday, which could prompt some to stock up on supplies now in order to avoid the effects of any further increase in values.

According to analysts at Swiss financial firm UBS, oil prices are set to average around $65 over the rest of this year, before rising to $70 in 2010 as the recession begins to ease.

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