Prices fall but could rise on flooding forecasts

14 February 2007

Oil prices have fallen after earlier rises, with London Brent crude dropping 33 cents to $58.50 (£29.97).

US crude also shedded some value, settling at $58.87 after a loss of 19 cents.

The decreasing prices come contrary to predictions of a rise in demand for oil in the US, after it was hit by a wintry storm yesterday.

Snow affected the mid-west and east coast of America, sparking talk of rising demand for supplies of domestic heating oil.

Additionally, the International Energy Agency forecast that demand for crude oil would rise to 86 million barrels per day this year - marking a 1.8 per cent increase.

Meanwhile in the UK, a severe weather warning has been issued for London and the south, with the Met Office predicting that a bout of wet and stormy weather could hit the area, causing flooding.

Southerners might want to stock up on domestic heating oil prior to any bad weather conditions setting in.