Oil price up despite stock increases

16/04/2009

Investors appear to be ignoring increases in crude oil stocks in the US as prices edge upwards, analysts have suggested.

Domestic heating oil costs could be set to rise, as Agence France-Presse reports that crude oil passed the $50 per barrel in Asian trading today.

The $50.22 price for a barrel of light sweet crude for May delivery marks the continuation of a recovery this week, with one expert telling the news source that it has been driven by activity in New York.

Jason Feer, Asia Pacific vice-president of energy market analysts for Argus Media in Singapore, remarked: "I think it's a bit of a follow-up effect from a rally in Wall Street."

The price increase came despite yesterday's announcement by the US Department of Energy that crude oil stocks have reached their highest level since September 1990.

Last week, Reuters reported concern among analysts that wholesale heating oil prices could fall below crude oil costs in coming months, due to stockpiles building up.