Soaring oil prices continue

3 March 2008

New highs are being reached as oil prices are continuing to rise, which could affect those with home heating oil.

Oil prices have increased by over $2 (£1.01) a barrel, after earlier rises this week took the cost of barrel of crude oil to a new record of $101.

However, Asian electronic trading recorded oil prices reaching $103.05 after the Nymex had closed.

The continuing slump in the US dollar is though to be responsible for the increase, as well as expectations of lower interest rates, which could be attracting investors.

"I really think that this is oil being viewed as ... a financial instrument," Phil Flynn, an analyst at Alaron Trading Corp. in Chicago, told the Associated Press.

Mr Flynn said that oil prices would be decreasing if they were following supply and demand trends, which was the trend recorded last week.

Click here to view home heating oil price trends.