New highs for oil prices

4 March 2008

For the second time in a matter of days, oil prices have rocketed to new highs, which could affect those who use home heating oil.

The cost of crude oil has been rising over the past week, with prices crossing the $103 (£51.82) a barrel threshold.

However, the latest figures show that the oil prices are nearing the $104 per barrel mark.

It is widely thought that the weakening US economy is partly responsible for the jump in costs.

Barclays Capital analyst Kevin Norrish told AFP that the sliding US dollar is providing "upward support for prices".

"The fundamental dynamics of the oil market continue to appear very solid, with the recent flow of data suggesting continued positive demand conditions and non-Opec [Organisation of Petroleum Exporting Countries] supply weakness," he said.

Opec has indicated that despite the surging oil prices, it will not change its output.

Click here to see how group buying can reduce the cost of home heating oil.