Oil prices plunge nearly four per cent

1 September 2009

Oil prices fell to less than $70 (£42.84) a barrel on Monday as concerns about the future of the global economy put downward pressure on the market.

US crude for October delivery plunged nearly four per cent, or $2.78, to settle at $69.96 a barrel, having earlier reached a low of $69.13.

Meanwhile, London Brent crude closed at $69.65 - down $3.14 on the previous day.

The dip came on the back of a near seven per cent drop in China's key Shanghai Composite stock index, sparking new fears about the pace of global economic recovery.

Oil prices have rallied in recent weeks as hopes grew that the worst of the recession may be over, but the setback brought an end to such positive sentiment.

UK residents might look to take advantage of the dip in crude prices to stock up on supplies of home heating oil before any potential recovery in the market.

Indeed, values have already climbed back above $70 in this morning's trading, with London Brent crude posting gains of 45 cents by 07:15 GMT to stand at $70.10 a barrel.

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