Oil prices jump by nearly 6%

1 October 2009

Crude oil prices surged by nearly six per cent on Wednesday, buoyed by hopes of a potential upturn in world energy demand.

Values jumped to more than $70 (£43.88) a barrel, helping to cancel out most of last week's eight per cent drop, after US government data showed a surprise draw in gasoline inventories.

The figures showed stockpiles fell by 1.6 million barrels, raising optimism among investors that fuel demand may be starting to pick up as the economy gradually begins to emerge from the recession.

Oil also found support from a drop in the value of the dollar, increasing interest in commodities from overseas buyers.

US crude for November delivery eventually settled up $3.90, or 5.8 per cent, at $70.61 a barrel, while London Brent crude climbed by $3.58 to close at $69.07.

This left values largely unchanged over the past three months, up 72 cents from June 30th.

Home heating oil customers had seen prices rise over the previous two quarters, with the market recovering from lows of $33 in January as hopes of an economic turnaround began to pick up.

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