Crude oil prices rise

29 January 2009

Crude oil prices stabilised on Wednesday as prices rose for the first time this week.

Following a fall of more than nine per cent on Tuesday, the market bounced back as Opec pledged to deliver its full supply cut by the end of the month, Reuters reports.

A spell of cold weather in the US also helped to boost demand for the fuel, which has seen inventories continue to rise in recent weeks.

US crude settled at $42.16 (£29.84) a barrel, up 58 cents, while London Brent climbed $1.17 to settle at $44.90.

In a bid to help stabilise the market, Opec has agreed to cut production by more than 4 million barrels a day since September, and the cartel plans to implement its full supply curbs by the end of January.

Opec hopes to drive crude oil prices up above $50 a barrel with its latest cuts, which could prompt home heating oil customers to purchase their fuel now to avoid any future cost increase.

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