Oil prices boost back from lows

17 August 2010

Posted by Neil Brunskill

Oil prices have begun to recover from five-week lows as the markets become more optimistic about the pace of growth.

Trades of crude oil broke $76 to reach $76.02 by 08:29 Eastern Time this morning and heating oil futures on the New York Mercantile exchange followed crude's trend.

Prices for the derivative rose back above $2 per gallon to sit at $2.0152.

Figures from a Bloomberg survey suggesting inventories could have fallen to a one-month low last week may also support price growth.

The results come ahead of the release of official figures from the US government later this week.

Growth in the European equity markets also boosted optimism that demand is on the up, Bloomberg reports.

Concerns over the effect of tropical storms could have on production in the Gulf of Mexico are also subsiding, after it emerged that a low pressure area in the region is unlikely to develop further.

Hurricanes and tropical storms in the area can push up prices for oil as production and reserves can be affected.

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