Fall in oil prices as US stocks slip

22 February 2008

Continuing concern over the US economy has caused a fall in the price of crude oil, according to reports, which could be of concern to users of home heating oil.

Following an all-time high of $100.74 (£51.24) a barrel on February 20th, it has subsided by 2.7 per cent.

The news agency suggested signs of a looming recession – including a manufacturing slump in Philadelphia – plus increased crude stocks were the reason for the fall.

Gerard Burg of National Australia Bank said: "There is an opportunity for a sell-down, particularly from the rising US crude stockpile.

"There is little to sustain prices above $100."

There is also an air of anticipation over the forthcoming Organisation of Petroleum Exporting Countries (Opec) meeting, set for March 5th.

Experts suggest Opec may decide to cut output in response to reduced seasonal demand for oil.

However Reuters noted that the International Energy Agency has asked Opec to keep output the same so the US can replenish low crude stocks.

Click here to view home heating oil price trends.