Oil prices hit new record

27 February 2008

Oil prices have jumped dramatically to a new record high, it has been reported, which could affect the cost of home heating oil.

A barrel of oil is now worth more than $101 (£51) - a rise of 72 cents, Reuters reports.

Oil prices hit $101.70 and then fell to $101.60 with the US falling faster towards an economic slump.

David Moore, a commodities strategist at the Commonwealth Bank of Australia, gave some reasons as to why the price of oil may have jumped.

"Cold weather in the US north-east and anticipation that Opec [Organisation of Petroleum Exporting Countries] will not increase oil production levels at the March 5th Opec meeting were also supportive for the oil price," the news source reports him as saying.

This leap in oil prices comes after a previous decline in the cost of a barrel last week.

Click here to view home heating oil price trends.