Oil prices slip

25 March 2008

Oil prices have fallen close to the $100 (€64.32) a barrel mark after last week's meteoric rises.

In news which may affect those with home heating oil, values dipped to $100.29 a barrel.

Last Monday, oil prices had rocketed to a new record high of near $112 a barrel.

David Moore, a commodity strategist with the Commonwealth Bank of Australia in Sydney, explained to the Associated Press some of the reasons that may be accounting for the dip in values.

"One of the things that may count against oil somewhat is the fact that we're now entering into a sort of lower demand part of the year and they will see some inventory building occurring," he said.

Mr Moore added that further interest rate cuts by the Federal Reserve could buoy the US dollar into revival.

Bloomberg reported last week that US demand for oil is falling and is 3.2 per cent less than it was at the same time last year.

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