Oil prices hover at $115 a barrel

18 April 2008

Oil prices are hovering around the $115 (£57.63) a barrel mark, after surging to new record highs this week.

The previous highest value of the commodity was set in March and stood at $112.21.

However, this record was smashed in Wednesday's trading, in news which is likely to affect home heating oil users.

The Associated Press reports that oil prices reached $115.54 a barrel during trading yesterday, resting at $114.86.

Commodity strategist with the Commonwealth Bank of Australia in Sydney David Moore told the news agency that the trend of high oil prices is being pushed by the struggling US economy.

He said: "In general, a weak US dollar ... has some valuation effect on oil prices and other commodities."

In fact, US consumption of petrol is expected to drop this summer for the first time in 17 years, the country's energy department stated recently.

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