Oil prices set for highest annual gain this decade

Well, it's not like we need to tell you that $3 gas is pretty much the new black. While the price of a barrel of oil hasn't broken the $100 barrier yet, it is sitting pretty at around $96 these days and the AP is saying that the high prices mean that the price of oil is set "for its biggest annual gain this decade as dwindling fuel stocks and growing concern over political turmoil offset the impact of a softening U.S. economy." You hear that, SUV drivers?
At the beginning of 2007, the price of a barrel of oil was $61, which makes the annual jump almost 58 percent. As the AP so gently reminds us, "Oil's rally is entering its seventh year, more than quadrupling its market value of below $20 at the start of 2002." The average price for 2007 is going to be about $72.30, a nine percent jump from 2006 and way higher than analysts' predictions of a $63.23 average. For 2008, a "consensus forecast" sees an average of $77.62 a barrel next year. Wonder how right/wrong that'll look in 12 months.

Oh, and Happy New Year!

[Source: AP]

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