This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8219672.stm

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
Oil falls back below $74 a barrel Oil prices bounce back above $75
(about 7 hours later)
Oil prices have fallen back below $74 a barrel after reaching a ten-month-high of almost $75 on Monday. The price of oil reached a 2009 record of $75 a barrel on Tuesday afternoon, recouping earlier losses that saw US crude fall to $73.83 in the morning.
The price drop was linked to falls in the Asian stockmarkets and anticipation of weaker demand following the end of the summer driving season in the US. The bounce followed figures showing growing confidence in the US housing market - house prices rose in June for a second month running.
US light sweet crude futures fell 54 cents to $73.83 a barrel in early trading, while London Brent crude fell 57 cents to $73.69. London Brent crude climbed by 31 cents to trade at $74 a barrel.
A 5% fall in the China stockmarkets is said to have renewed economic concerns. Share prices also climbed as Ben Bernanke was re-appointed head of the US Federal Reserve.
"The drop is probably due to the decline in equities markets today," said fund manager Tetsu Emori from Tokyo-based Astmax Co Ltd. "We continue to see the market track global markets to look for some more green shoots," said analyst Andrey Kryuchenkov from VTB Capital.
Low demand The rise takes oil prices to their highest level in ten months.
Seasonal demand is another factor that influences oil prices. The morning price drop was linked to falls in the Asian stockmarkets and anticipation of weaker demand following the end of the summer driving season in the US.
Although China announced a 3.5% increase in demand for oil in July on Monday, global demand around September is traditionally lower.
"Oil at the $70 plus level remains potentially vulnerable because there is little constructive fundamental support, inventories are high and global demand remains weak," said energy analyst Victor Shum, from Purvin & Gertz.
"Seasonally, oil demand is lower in autumn, so reduced demand on the shoulder season may put further pressure on oil."
US light crude hit a record high of $147 a barrel in July 2008, falling back to just above $30 a barrel at the start of this year, as the global recession worsened.US light crude hit a record high of $147 a barrel in July 2008, falling back to just above $30 a barrel at the start of this year, as the global recession worsened.