Heating oil prices may rise as Opec member predicts supply cut

2 September 2008

Heating oil prices could be set to rise as it has been suggested that Opec may cut crude oil production.

Iranian Opec governor Mohammad Ali Khatibi told the Mehr news agency that a recent dip in the cost of a barrel could prompt a reduction in supply.

He said: "In view of the drop in oil prices, there is this possibility that OPEC would approve an output cut in its upcoming meeting in Vienna."

This would allow the cartel to maintain control over the market, following a drop from the record price of $147 (£82) in July.

Recently Mr Khatibi predicted that oil prices could soar as high as $500 per barrel in the next few years, the Belfast Telegraph reported.

He claimed that a conflict in the Middle East would affect production in the entire region, leading to a "price explosion", something that would see home heating oil bills soar.

Click here to save money with BoilerJuice Buying Weekends