Oil prices surge ahead

14 March 2008

Oil prices have yet again surged ahead of previous records, hitting unprecedented values of $111 (£54.59) a barrel.

In news which may affect those with home heating oil, values of the commodity have continued to rocket while the US dollar languishes on the back of the credit crunch and subprime crisis.

Oil prices fell slightly at the close of business, finishing at $110.33.

The BBC reports David Moore, a commodity strategist with the Commonwealth Bank of Australia as stating: "Oil and other commodities have an intrinsic value to the extent that the US dollar depreciates, (oil) becomes relatively cheaper in terms of other currencies, such as the euro."

He added that this compensates for the effect of rising oil prices.

Earlier this week, the euro hit an all-time high against the dollar, while the Organisation of Petroleum Exporting Countries has not heeded calls to alter its output.

Click here to view home heating oil price trends.