Oil prices steady after climb

23 April 2008

Following near-record oil prices, the value of crude steadied in New York against the prediction that flagging US demand would be offset by increases in other countries.

For the first time the US, the largest energy consumer in the world, will be overtaken by China, India, Russia and the Middle East in its consumption of oil.

According to the International Energy Agency, demand in the US will drop by about two per cent.

On Tuesday oil climbed to $119.90 (£60) a barrel as the dollar reached $1.6019 against the euro.

"Crude rose primarily on the movement in the dollar and the strong demand in China and that's inevitably pushed us toward $120,'' Victor Shum, senior principal at Purvin & Gertz, told Bloomberg.

Associated Press reported that oil is now almost twice the value of its closing price a year ago and up 24 per cent in 2008, while it suggested supply constraints were also supporting the rise in prices.

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