Oil prices slip further

1 April 2008

In news which may interest those with home heating oil, values of the commodity have slipped further over night.

Yesterday, oil prices dipped below $105 (€66.42) to reach $104.34 - a fall of $1.28.

Values tumbled further to $101.40 today following growing speculation that demand for oil is weakening in the US, AFP reports.

According to Victor Shum, the senior principal at Purvin and Gertz energy consultancy in Singapore, profits seen in the first quarter mean pricing has been "pulled back".

"Market sentiment has turned bearish given the latest data out of the US, which showed softening demand," he told the news agency.

An analyst at BMO Capital Markets, Bart Melek, added that the global economy is worrying markets.

Last week, an export pipeline in Basra, Iraq, was targeted by an attack which caused concern among market analysts.

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