Crude oil jumps to new 12-month high

15 October 2009

Oil prices reached their highest settlement point in more than a year on Wednesday (October 14th) as the recent market rally continued.

US crude for November delivery settled at $75.18 (£46.43) a barrel, up $1.03 on the previous day, while London Brent crude gained 70 cents to close at $73.10.

This marked the highest settlement point since October 2008, as the market continued to find support from the weak dollar and growing economic optimism.

A series of better-than-expected company results and US retail sales data boosted hopes of a recovery that could see fuel demand begin to pick up again, pushing oil prices higher.

Meanwhile, the US dollar continued to slide against the euro and other currencies, making commodities more attractive to overseas investors.

The recent price rally could come as bad news for home heating oil customers, with any increase in crude values likely to have a knock-on effect on the cost of the domestic fuel.

It has also come as a concern for the International Energy Agency, who expressed fears this week that a sharp upturn in oil prices could hamper the success of any economic recovery.

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