Oil prices return to record highs

10 April 2008

Oil prices are once again reaching record highs of over $112 (€70.54) a barrel, in news which is likely to affect home heating oil users.

Yesterday's trading saw oil prices saw past their previous highest value of $111.80 a barrel to hit $112.21, the Associated Press reports.

However, values declined slightly by the end of trading to settle at $110.87.

Energy analyst with Purvin & Gertz in Singapore Victor Shum stated that US crude inventories took a "surprise" dip that may have caused the surge in pricing.

"Gasoline inventories are higher than the historical average at this time of the year, and gasoline fundamentals are actually weakening in the US, so there is really no need to worry about supply being too tight," he told the news agency.

Oil prices had increased at a slower rate earlier in the week, although according to Bloomberg, values of the commodity are 77 per cent more expensive than last year.

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