Oil prices edge back towards $67

29 September 2009

Crude oil prices bounced back from recent losses to edge back towards $67 (£42.27) a barrel on Monday (September 28th), buoyed by a jump in US equities.

Wall Street stocks enjoyed their biggest hike in five weeks as an increase in merger and acquisition activity helped fuel hopes of an economic turnaround.

This in turn pushed oil prices upwards, with traders hopeful that an end to the recession will also help spur energy demand.

US crude for November delivery eventually settled at $66.84 a barrel, up 82 cents on the previous day, while London Brent crude gained 43 cents to close at $65.54.

The upturn came after home heating oil customers last week saw prices slide by as much as eight per cent, after US government data showed inventories of the fuel had risen.

However, according to analysts at Wall Street bank Goldman Sachs, oil demand is recovering from the effects of the recession much faster than first anticipated, meaning crude prices could reach as much as $80 a barrel before the year is out.

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