Oil prices rise by 3%

9 October 2009

The oil market was boosted by fresh economic optimism on Thursday (October 8th), pushing prices up three per cent to more than $71 a barrel (€48.21).

US data showed that unemployment claims in the world's biggest consumer country fell to their lowest level in nine months last week, fuelling hopes of an economic turnaround.

Confidence was also boosted by a strong day on the US stock markets, while a fall in the value of the dollar made commodities more attractive to foreign buyers.

This was enough to push oil prices above $71, as US crude for November delivery gained $71.69 to close at $2.12 a barrel. London Brent crude settled up $2.57 at $69.77.

The increases helped cancel out the losses recorded on Wednesday (October 7th), when US crude fell by $1.31 to slip below $70.

Heating oil and natural gas also prices also rose on the back of renewed investor confidence, reaching $1.85 a gallon and $4.96 per 1,000 cubic feet respectively.

However, oil's gains were tempered in early trading today (October 9th) as US crude fell 77 cents to $70.95 a barrel, while London Brent crude dropped 75 cents to reach $69.02.

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