Oil prices recover

18 March 2008

Oil prices recovered to reach just over $107 (£53) a barrel, following a steep decline from the previous high levels of the commodity.

Earlier this week, values cruised to over $111 a barrel after hitting record highs on an almost daily basis for the past week.

However, news yesterday that US investment bank Bear Stearns is to be sold following its collapse may have caused concerns in the market as oil prices dipped to around $105.

David Moore, a commodity strategist with the Commonwealth Bank of Australia explained the drop in values to the Associated Press.

"It mainly reflected concerns about the US economic outlook given the stresses in the US financial system," he said.

In other news, price comparison site BoilerJuice is calling for more people to sign its petition against oil taxes.

The website was disappointed that Alistair Darling did not announce measures that will help guard home heating oil users from rocketing oil prices in his Budget last week.

Click here to sign up for the petition