Rising oil prices to return, say analysts

21 August 2008

Oil prices are likely to remain high as developing countries increase their use of energy, it has been claimed.

The Associated Press reports that this will combine with political tensions and speculation that production will be affected by the hurricane season to keep costs up.

Currently, the news source states, the price of a barrel of crude oil is over 60 per cent higher than a year ago, reaching $114.98 (£61.63) in New York yesterday.

And with doubt emerging that Russia will keep to a ceasefire with Georgia, as well as fears of disruption to supply in the Gulf of Mexico, analysts have warned that this will rise further.

Giovanni Serio, of Goldman Sachs, was quoted as saying: "We reiterate that fundamentals in the oil market suggest a return to a rising oil price environment."

The high price of oil has seen heating oil costs rise, prompting the Scottish National Party to call on the government for greater protection of consumers this week.

Click here for home heating oil price trends