Fluctuations in oil market continue

19 September 2008

Crude oil prices in the US briefly tipped $100 (£55.61) a barrel on Thursday, before falling back to finish at $97.88, as uncertainty over the economy and lower demand continued.

The rise in value - which saw prices for October delivery briefly reach $102.24 - has been attributed to traders investing in safer commodities amid the economic turmoil.

However, the finishing price of $97.88 a barrel represented a small rise of just 72 cents on Wednesday's trading.

Speaking to the Associated Press, Phil Flynn, an analyst at Alaron Trading Corporation said: "Oil's torn. It doesn't know if it's a financial indicator or a commodity."

Crude oil prices have fallen steadily since they reached a record high of $147.27 a barrel on July 11th.

The continued drop in crude oil means it could be a good time to invest in heating oil before the winter rush.

Prices have remained low in the US after the damage caused by Hurricane Ike was less severe than first thought.

Click here to save money with BoilerJuice Buying Weekends