Oil prices rise again

27 March 2008

An overnight surge in oil prices has taken values to close to $106 (€67.07) a barrel.

So far this week, values of the commodity have remained subdued despite last week's meteoric rises.

However, prices rose by four dollars overnight, after values were recorded at near $102 a barrel yesterday.

Oil prices had hovered around the $100 a barrel mark at the beginning of the week, seven days after a record high of nearly $112 was reached.

Commodity strategist at ANZ Bank Mark Pervan told the Associated Press that stock levels have contributed to the rise.

"(Gasoline) stock levels are at a higher than normal level, so they've pulled back on production and this is why we've seen a fairly sharp drop in (refinery) utilisation rates," he said.

He described the US drop in stock levels as "larger than expected".

It was suggested that falls in oil prices earlier this week has been sparked by another rate cut in the US by the Federal Reserve.

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