Oil prices to continue to soar

29 February 2008

Oil prices are continuing to reach new highs, in news that is likely to affect those who use home heating oil.

Following an announcement earlier this week that the cost of a barrel of crude oil had reached a new high of over $101 (£51), oil prices have increased by more than $2 a barrel.

A new record of $103.05 was recorded by Asian electronic trading after the Nymex closed.

The trend is thought to be because of the continued slump in the worth of the US dollar as it heads towards an economic low and lower interest rates are attracting investors.

Phil Flynn, an analyst at Alaron Trading Corp. in Chicago, told the Associated Press:"I really think that this is oil being viewed as ... a financial instrument."

He added that if oil prices were responding to supply and demand they would be falling, a trend that was recorded last week.

Click here to view home heating oil price trends.