Oil prices steady above $105

7 March 2008

Oil prices have steadied above the $105 (£52.18) a barrel mark today, following yesterday's dramatic increases in values.

Falling 32 cents, oil prices rested at $105.15 after earlier surging towards an unprecedented $106 a barrel - new which is likely to affect those with home heating oil.

Yesterday saw a new record of $105.97 reached, after it was only last week that oil prices surpassed the $103 threshold for the first time.

Victor Shum, an energy analyst with Purvin & Gertz, told the Associated Press that a crash in prices could be possible.

Describing the oil market as a "bubble", Mr Shum stated: "At some point, some event will trigger financial players to exit oil as fast as they've got into oil."

It is thought that oil prices are rising as the US dollar slumps, with US president George Bush recently calling for the Organisation of Petroleum Exporting Countries to change its output - a request that was denied earlier this week.

Click here to view home heating oil price trends.