Oil prices fall back towards $72

26 August 2009

Oil prices tumbled back towards $72 (£44.16) a barrel on Tuesday, despite US data showing an increase in consumer confidence as the recession shows signs of easing.

US crude for October delivery plunged three per cent, or $2.32, to settle at $72.05, while London Brent crude settled down $2.44 at $71.82.

The losses marked the biggest percentage drops for nearly two weeks as the recent market rally came to an abrupt end.

Prices initially continued to rise, touching more than $75 a barrel after US reports showed an upturn in consumer confidence, as well as higher house prices in the country.

However, despite the positive news, the market dipped later in the day as traders took the opportunity to lock in profits following the recent rally.

This may be a good opportunity for home heating oil customers to stock up on supplies of the fuel in order to avoid the effects of any potential increase in crude prices in the future.

Indeed, oil has already made slight gains during this morning's trading, with US crude up 16 cents from its closing point on Tuesday to stand at $72.21.

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