Oil prices slip slightly on stock market falls

18 September 2009

Crude oil prices edged slightly lower on Thursday as fresh economic doubts brought an end to the recent rally.

US crude for October delivery settled at $72.47 (£44.33) a barrel, down four cents on the previous day, while London Brent crude slipped 12 cents to close at $71.55.

The slight dip in the market came after values surged by more than two per cent on Wednesday, as US government data revealed a sharp fall in inventories.

This had prompted hopes that fuel demand could be beginning to pick up, but the optimism was dampened on Thursday as investors struggled to gauge the strength of any recovery.

US stock market values fell for the first time in four days, prompting renewed caution from traders and pushing oil prices back down.

The dip could be welcome news for home heating oil customers, who have seen crude values more than double from levels of less than $33 a barrel at the start of this year.

However, oil prices still remain some way off the record $147 mark reached last July.

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