Oil prices dip as demand falls

25 March 2008

Falling demand has been suggested as one reason why oil prices have slipped to near the $100 (£50.19) a barrel mark.

Values have fallen to $100.29 a barrel, in news which could be beneficial to home heating oil users.

Commodity strategist with the Commonwealth Bank of Australia in Sydney David Moore suggested to the Associated Press: "One of the things that may count against oil somewhat is the fact that we're now entering into a sort of lower demand part of the year and they will see some inventory building occurring."

Further rate cuts by the Federal Reserve could buoy the US dollar, which may support the downward trend, he added.

Oil prices had reached new highs last week, almost tipping the $112 a barrel mark although Bloomberg noted that US demand has fallen of late and is standing at 3.2 per cent less than at the same time last year.

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