Oil prices could be 'on the road to $150 a barrel'

24 September 2008

Crude oil prices could be on the way back to the record levels of July, according to a leading analyst.

Stephen Schork, an oil trader and analyst, told the Associated Press: "We could be back on the road toward $150 (£80.91) a barrel."

Mr Schork added that the weakening economy and lack of stability in the dollar could see investors pile back into commodities like oil, leading to higher prices.

Oil prices hit a record high of $147.27 a barrel on July 11th, but dropped down below $100 last week before fluctuating this week.

Future prices jumped $25 at one point on Monday as panicked traders who had bet on the value of crude oil falling tried to cover their positions.

Trading on Tuesday in New York ended with crude oil for November delivery trading at $106.61, slightly down on Monday.

The unsteady situation in the US economy comes after the collapse of Lehman Brothers and a planned $700 billion government economic aid programme.

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