Oil prices rocket to new highs

7 March 2008

Oil prices have once again rocketed to record highs, with values soaring towards $106 (€68.83) a barrel.

In news that is likely to affect those with home heating oil, oil prices surged yesterday to a high of $105.10.

On Monday, a new record of $103.95 a barrel was set, although this has now been smashed as economic pressures continue to boost crude values.

It is thought that the falling US dollar and slowing American economy has contributed to the oil price hikes.

However, the Organisation of Petroleum Exporting Countries (Opec) decided to ignore calls for it to alter its output when it met earlier in the week.

Energy analyst with Purvin & Gertz Victor Shum told the Associated Press that a "drawdown in crude inventories" was the main problem behind the price hikes.

"The overall oil market fundamentals are supportive of strong oil prices but not at this level, above $100. I would expect some profit taking to put a temporary halt to this rather large surge in pricing," he stated.

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