Oil prices remain high

10 March 2008

In news which could affect those who use home heating oil, oil prices have remained high, it has emerged.

Oil prices surged towards a record level of $106 (€68.92) per barrel last week, but have settled at $105.15 after dropping 32 cents.

It was only just over a week ago that oil prices rocketed to then new record highs of $103 per barrel.

Energy analyst with Purvin & Gertz Victor Shum said that prices are so inflated they have the potential to crash, the Associated Press reports.

"At some point, some event will trigger financial players to exit oil as fast as they've got into oil," referring to the market as currently like a "bubble".

A slump in the US economy is thought to be one reason why traders are paying high amounts for the commodity, although pleas from president George Bush last week failed to push oil cartel the Organisation of Petroleum Exporting Countries to adjust its output.

Click here to view home heating oil price trends.