Oil prices strike new high

13 March 2008

The trend of rocketing oil prices has continued with news that the value of a barrel of the commodity has hit a new record high.

In news which is likely to affect those with home heating oil, values surged past the $110 (£54) a barrel mark to reach $110.70, as concerns over the weakening US economy continues to grow.

The previous record of $109.72 was reached earlier this week as the dollar fell to record lows against the Euro.

Olivier Jakob of Petromatrix in Switzerland told the Associated Press: "The dollar will remain the dominant factor until the Fed [Federal Reserve] meeting next Tuesday, but oil will also have to balance with equities under the pressure of more credit hedge funds going belly-up."

Many economists are linking the rising oil prices to the falling dollar values.

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

Click here to view home heating oil price trends.