Stronger dollar prompts dip in oil prices

21 September 2009

Crude oil prices slipped back towards $72 (£44.51) a barrel on Friday (September 18th), surrendering some of the recent gains following a rise in the value of the US dollar.

Values rallied by around five per cent during the course of the week, having started out at less than $70 a barrel on Monday (September 14th).

Heavy losses in the US dollar played a major part in the rise as the currency fell to its lowest value in nearly a year, increasing the attractiveness of oil to foreign buyers.

However, the greenback strengthened again on Friday, while traders sought to lock in profits on the back of the earlier rally, putting downward pressure on oil prices.

US crude for October delivery eventually settled at $72.04 a barrel - down 43 cents on the previous day - with London Brent crude down 23 cents at $71.32.

There was further good news for home heating oil customers on Monday (September) as crude values continued to fall in early morning activity.

At 06:37 GMT, US crude traded 64 cents lower at $71.40, while London Brent crude fell 49 cents to $70.70, Dow Jones reported.

Click here for a home heating oil quote.