Oil prices hit new ten-month high

24 August 2009

Crude oil prices touched their highest point in ten months on Friday as the market was boosted by hopes that a potential economic recovery may be just around the corner.

US crude for October delivery settled at $73.89 (£44.83) a barrel - its highest closing point since October 20th - after climbing 98 cents.

London Brent crude gained 86 cents to end at $74.19.

The rally came on the back of positive comments from US Federal Reserve chairman Ben Bernanke, who said a rebound in the global economy is now within sight.

Meanwhile, home sales data in the world's largest consumer country revealed an improvement in the housing market during July, creating further optimism.

Home heating oil customers have now seen crude prices rise by more than $6, or nearly ten per cent, over the course of the past week.

This may prompt some to stock up on supplies now, with the International Energy Agency recently predicting further increases in the future.

Dr Fatih Birol, chief economist at the organisation, told the Independent that a potential "catastrophic" shortfall in oil supplies could see prices soar in the coming years.

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