Oil prices slide by nearly 4.5 per cent

25 September 2009

Oil prices fell to less than $66 (£41.24) a barrel on Thursday as high inventory build-ups and poor economic data fuelled concerns over global energy demand.

US crude for November delivery fell by $3.08, or 4.4 per cent, to close at $65.89 a barrel, while London Brent crude slipped $3.17 to settle at $64.82.

Values had already come under pressure on Wednesday after a report by the US Energy Information Administration showed that stockpiles of the fuel grew by 2.8 million barrels in the week ending September 18th.

This was followed on Thursday by news of an unexpected drop in US home sales during August, which dampened hopes of a potential economic recovery.

UK residents may welcome the dip in prices, as any change in the value of crude could be reflected in the cost of home heating oil.

However, the market bounced back in early trading on Friday, with US crude up 18 cents at $66.05 by 07:00 GMT and London Brent crude gaining 29 cents to reach $65.44.

Click here for a home heating oil quote.