Oil prices stabilise

5 March 2008

Oil prices stabilised today, falling rocketing values at the beginning of the week.

The cost of oil per barrel hit $100.19 (£50.54) this morning after previous hikes saw it climb to new records of $103.95 at the beginning of the week.

Oil prices dropped three dollars on Tuesday but then rose 67 cents to hit its current level.

The ailing American economy has been suggested as one reason why oil hit record high levels recently, although oil cartel the Organisation of Petroleum Exporting Countries (Opec) has stayed firm on its decision to not alter its output.

US president George Bush was among those calling for Opec to change its stance but Forbes reports Robert Laughlin of MF Global as stating: "I expect Opec members will ignore his call ...especially having seen yesterday's price action. The key will be a unified communique."

It was only a week ago that oil prices passed the $103 per barrel threshold.

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