Oil prices 'close to $70'

22/09/2009

China's crude consumption was reported to have fallen in the month of August. China are one the few remaining nations to continue to consume oil, diesel and gasoline at increased rates, reports the Associated Press.

The worldwide recession has caused energy consumption to drop considerably in the European and North American markets but some experts are predicting a change to occur.

Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore, said: "I think we're going to see a pretty significant recovery in the second half in the US and Europe and demand from China has been holding up."

He added that crude has the potential to rise above $75 in the next month.

In Nymex trading heating oil rose 2.12 cents to $1.7729 a gallon.

It was widely reported last week that America's stockpiles of distillate fuels including heating oil are close to the highest levels for 27 years.