Oil prices fall back towards $72

21 September 2009

The recent oil price rally came to an end on Friday (September 18th) as a stronger US dollar and profit-taking from dealers put downward pressure on the market.

US crude for October delivery settled at $72.04 (€49.17) a barrel, down 43 cents on the previous day, while London Brent crude fell 23 cents to close at $71.32.

The losses brought an end to the upward movement that had seen values rise by around five per cent, having started the week at less than $70 a barrel.

BNP Paribas analyst Tom Bentz told Reuters: "After being up for much of the week the market took a slight breather on Friday and the dollar was able to show some strength."

The rise in the value of the dollar, which had sunk to a near-one-year low against the euro, reduced the appeal of oil and other commodities to overseas investors.

Home heating oil customers may welcome the dip in the market, which continued today (Monday, September 21st) as US crude fell 64 cents to $71.40 by 06:37 GMT.

London Brent crude fell 49 cents to $70.70 a barrel.

Click here for a home heating oil quote.