Oil prices creep up

Oil prices began to edge back up today after falling to their lowest levels in almost two months last night.

Prices fell as low as $70 a barrel on Thursday, a level not been seen since June 21 when oil cost $68.80, before drifting slightly higher today.

The fall in the price of oil was prompted by the US Energy Department, which said stockpiles were above average for the time of year, despite falling by 1.6 million barrels in the week ending August 11.

Oil prices rose to record levels of more than 78 US dollars at the beginning of the month amid problems at BP’s Prudhoe Bay oilfield in Alaska, and the Israeli conflict.

But prices have eased in recent days after BP said it would continue production at parts of the field and a ceasefire was agreed in the Middle East.

Today, Brent crude was rising again, up 52 cents to $72 a barrel, while light sweet crude climbed 43 cents to $70.49 a barrel.

However, it does not look set to hit drivers just yet with the AA Motoring Trust suggesting prices will have to push nearer $75 a barrel before petrol rises.

Spokeswoman Ruth Bridger said: “Oil prices are on their way down and hopefully this will be reflected in prices at the pumps in the short to medium term.

“Small blips of less than one or two US dollars – like today – should not affect pump prices. The overall trend is that prices are coming down.”