Oil prices fall slightly

16 February 2007

Further small losses in oil prices have been experienced on the back of high inventories.

London Brent crude dropped ten cents to $57.50 (£29.50) per barrel while US fuel fell by four cents to $57.95.

Prices may yet fall lower as the end of the winter heating season approaches, analysts at BMO Nesbitt Burns told news source XFN.

"In the short-term, the market is bearish as inventory levels are overall high," said Tony Nunan of Mitsubishi Corp's international petroleum business.

Analyst Edward Meir, of Man Financial, said in a report that with spring fast approaching, oil prices may fall closer to the $50 mark than $60, the Associated Press reports.

Recent snowy and stormy weather in the UK is expected to have cleared up over the next few weeks; however there is around a 30 per cent chance that the weather could become colder but drier at the beginning of march, with night frost expected in the north and east.

With changes to the weather conditions forecasted, it may be wise for Britons to ensure they have supplies of domestic heating oil for the forthcoming frosty nights.