Oil prices rise on increased demand hopes

14 October 2009

Crude oil prices touched new seven-week highs of more than $74 (€49.72) a barrel on Tuesday (October 13th), buoyed by hopes of an upturn in world fuel demand.

Producer group Opec opted to raise its outlook for global oil consumption next year by 700,000 barrels a day, citing an impending economic recovery as the main driver.

The move came after the International Energy Agency also increased its 2010 demand forecast last week, helping to boost confidence among investors and offer further support for oil prices.

A weaker US dollar prompted further gains as the greenback slid to a 14-month low against a basket of foreign currencies, increasing the appeal of oil to overseas traders.

US crude for November delivery settled at $74.15 a barrel, up 88 cents on the previous day, while London Brent crude gained $1.04 to close at $72.40.

Meanwhile, home heating oil customers have seen the upward trend continue in early morning trading today (Wednesday October 14th).

US crude earlier reached a 2009 high of $75.12 a barrel and stood at $75.07 by 12:40 EDT, while London Brent crude rose 86 cents to $73.26.

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