Oil prices continue to fall

15 January 2010

Oil prices continued to drop in trading towards the end of the week, following ongoing concerns over the state of the economy and a drop in demand.

Prices for both crude and heating oil futures fell on the New York Mercantile Exchange.

Heating oil dropped to 206.72 cents per gallon, while crude futures fell further away from the $80 per barrel level to stand at $78.95 at 04:28 Eastern Time this morning.

Market regulators this week announced proposals to enforce stricter controls on oil traders as part of a bid to reduce the level of speculation in the market.

The full effect of new regulations on the market remains to be seen, Reuters reports that analysts have said.

Despite a prolonged cold snap across much of Europe and the US, signs of an end to the freezing conditions have reduced demand outlook for the commodity and prices have weakened as a result.

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