Little change for oil prices after rise

23 April 2008

Crude prices levelled out following a flurry of activity that saw prices threaten to break records.

Oil reached almost $120 (75 euros) per barrel and the dollar reached $1.6019 against the euro on Tuesday.

However crude prices in New York stabilised as the International Energy Agency predicted that the effects of a falling US market would be soaked up by the growth of oil demand in China, India, Russia and the Middle East.

The US, which has been the world's biggest energy consumer, will see a fall in demand of about two per cent, according to the agency.

"Crude rose primarily on the movement in the dollar and the strong demand in China and that's inevitably pushed us toward $120," Victor Shum, senior principal at Purvin & Gertz, told Bloomberg.

Associated Press reported that the price of oil is now almost double its closing price of the same time last year and suggested supply constraints were also supporting the rise in prices.

Click here to view home heating oil price trends.