Oil prices continue to soar

5 March 2008

Oil prices have continued to soar to a new high, in news that is likely to affect those with home heating oil.

For the second time in a week, oil prices have hit a new record high as the cost of a barrel pushed towards the $104 (€68.54) mark.

It is thought that the continued downward trend in the US economy is partly responsible for the price hikes.

Furthermore, oil cartel Organisation of Petroleum Exporting Countries (Opec) is not expected to alter its output despite the rocketing costs.

Kevin Norrish of Barclays Capital told AFP: "The fundamental dynamics of the oil market continue to appear very solid, with the recent flow of data suggesting continued positive demand conditions and non-Opec supply weakness."

He added that the falling value of the US dollar was also providing "upward support for prices".

Last week, oil prices crossed the $103 per barrel threshold for the first time.

Click here to see how group buying can reduce the cost of home heating oil.