Soaring oil prices recorded

6 March 2008

Oil prices have rocketed for the second time this week, it has emerged.

Values have now surged to $105.10 (£52.47) a barrel, which could affect those with home heating oil.

This latest oil price hike follows increases earlier this week that saw oil prices reach what was then a record high of $103.95 a barrel.

A slumping US economy is widely thought to be one reason for the soaring costs, as well as yesterday's decision by the Organisation of Petroleum Exporting Countries (Opec) to continue its current level of production.

This decision was made by Opec despite pressure from industry leaders, as well the US president George Bush.

Victor Shum, an energy analyst with Purvin & Gertz, told the Associated Press that the main factor behind the price hikes was "drawdown in crude inventories".

"The overall oil market fundamentals are supportive of strong oil prices but not at this level, above $100. I would expect some profit taking to put a temporary halt to this rather large surge in pricing," he said.

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