Oil prices begin to rise

3 October 2007

Crude oil began to recover on Wednesday following three consecutive days of price falls.

Fears that problems in the US economy could lead to a downturn in demand for oil saw US crude lose 19 cents to close at $80.05 (£39.23) a barrel on Tuesday, while London Brent crude dropped 26 cents to $77.38.

However, concerns that another hurricane may be developing in the Atlantic, a refinery fire in Alberta and uncertainty about what the US Energy Information Administration's weekly inventory report may show helped to push prices up slightly during Asian trading on Wednesday.

The price of US crude regained the 19 cents it had lost on Tuesday, while London Brent crude rose by six cents.

Meanwhile, a leading economist has warned that although oil prices are currently close to record highs, they will rise significantly next year, reports MarketWatch.

Speaking at the CIBC second Annual Industrials Conference, the bank's chief economist Jeff Rubin said: "We're in a world of triple-digit oil prices for the foreseeable future."