Oil prices bounce back

18 July 2008

Oil prices have risen again slightly, after three days of falling brought the cost of a barrel to below $130 (£65.29).

A ten per cent slide has been halted, with Reuters reporting the price to be up $1.43 to $130.72 this morning.

The news will interest home heating oil customers, who will see prices soar if highs such as the record $147.27 of last week are reached again.

According to Reuters the quick decline can be attributed to easing tensions between Iran and the US, with the Iranian foreign minister describing the latter country's participation in nuclear discussions as "positive".

Last week fears that the Strait of Hormuz would be closed prompted an acceleration of prices, since about 40 per cent of the world's oil supply passes through there.

This week prices fell by the biggest amount for a single day in 17 years.

Click here for home heating oil price trends