Oil prices creep back up

19 March 2008

Oil prices are increasing again following a sharp decline after fears were raised about the US economy.

Values of commodity recovered to finish at $107 (€67.92) a barrel, although this was somewhat short of the unprecedented levels recorded last week.

Oil prices surged to over $111 last week, breaking new records on an almost daily basis.

But value slipped to around the $105 mark after US investment bank Bear Stearns announced its collapse and subsequent buyout by JP Morgan.

Commodity strategist with the Commonwealth Bank of Australia David Moore told the Associated Press that the struggling American economy is linked to increasing oil prices.

"It mainly reflected concerns about the US economic outlook given the stresses in the US financial system," he remarked.

Financial pressure is mounting on home heating oil users, price comparison website BoilerJuice said yesterday.

It has called for more people to sign its petition against oil tax.

Click here to sign up for the petition