Mon, May 28, 2012, 4:13 PM EDT - U.S. Markets closed for Memorial Day

Oil price ending 2011 near $100 a barrel

Oil prices rise in 2011 for third year in a row; prices expected to keep climbing in 2012

NEW YORK (AP) -- The price of oil soared in 2011 and will finish about 19 percent higher, on average, after a volatile year dominated by concerns about global supplies.

And high oil and gasoline prices are expected to continue weighing on the economy as it struggles to grow in 2012.

"It's like leaving the parking brake on while you're trying to drive the economy forward," said Michael Lynch, president of Strategic Energy & Economic Research.

Benchmark crude gave up 82 cents to finish at $98.83 per barrel on Friday, the final trading day of the year.

Overall in 2011, crude prices averaged $95.09 per barrel in New York. That's up from $79.64 in 2010 and $62.11 in 2009. The Energy Department expects prices to rise further in 2012 to an average of $98 per barrel.

After starting the year at $91.38 per barrel, oil prices jumped in February as an anti-government rebellion began in Libya. International oil companies pulled employees from the country as the fighting escalated, and oil production was essentially halted for several months.

About 1.5 million barrels of daily oil exports were cut off during the Libyan uprising. That's less than 2 percent of what the world uses, but with demand rising to 88 million barrels per day, every last drop mattered. Oil prices jumped 25 percent from the middle of February to the first week in March.

The price of benchmark West Texas crude rose as high as $113.93 a barrel in April, then dropped to $75.67 by October.

Prices are again flirting with $100 per barrel following threats from Iran to close key shipping lanes in the Persian Gulf. Iran, which has been accused of trying to build a nuclear weapon, has been threatening to shut down the Strait of Hormuz if the U.S. and other countries target the country with new sanctions.

The waterway is a key route in and out of the Persian Gulf, used by tankers carrying one-sixth of the world's oil exports.

As oil prices rose this year, the global economy cut back on fuel consumption. A private survey released Friday showed that Chinese manufacturing activity slowed in December for a second month due to weak global demand amid U.S. and European economic woes.

In the U.S., gasoline demand dropped by 2.5 percent overall in 2011, according to the Energy Department. Pump prices are down 72 cents per gallon since peaking in May near $4 per gallon ($1.05 a liter). On Friday the national average for a gallon of regular was $3.269 (86 cents a liter), according to AAA, Wright Express and Oil Price Information Service. Analysts expect the average pump to rise to $4 a gallon again by spring.

In other energy trading Friday, heating oil rose 1.75 cents to finish at $2.935 per gallon, and gasoline futures rose by less than a penny to end at $2.6863 per gallon. Natural gas futures fell by 3.8 cents to finish at $2.989 per 1,000 cubic feet.

Brent crude, which is used to price foreign oil that's imported by U.S. refineries, fell 63 cents to end the year at $107.38 per barrel in London.

 

66 comments

  • jim s  •  Dallas, Texas  •  4 months ago
    and that's without a kiss or even a reach-around..talk about feel cheap,and used
  • Nicholas  •  4 months ago
    I'm sick and tired with the 100 dollars a barrel of oil.....We as americans fight all wars in the middle east,spend blood and treasure to protect the free flow of oil from the persian gulf but we are powerless to control the price of oil.What's going on with this picture????Please don't give me the crap about free market economics.....i don't buy that....OPEC is a dictatorship....
    • Tyrone 4 months ago
      Too bad that Americans are not allowed to drill but a few oil wells in our country.
  • MIKE  •  San Luis Obispo, California  •  4 months ago
    in the first 10 month, this country exported 848 million barrels and imported 750 million barrels of oil. I ASK ALL OF YOU WHERE'S THE OUTRAGE.
    • exp_x 4 months ago
      WRONG! America is a big time importer of oil. Recently there have been exports of gasoline. You don't own the gasoline so it's no concern of yours. Maybe you should start reading up on peak oil.
    • LanceS 4 months ago
      Right on Exp. Glad to see there's someone here with a clue.
    • shane c 4 months ago
      Mike must be a Liberal.... he is clueless.
  • NightShift  •  Cookeville, Tennessee  •  4 months ago
    Oil up 19% yoy but the government says there is no inflation.......right.......
    • Darrell 4 months ago
      Nice that the fed can pick and choose what products it wants to include in inflation figures. You can make statistics say anything.
  • Frank  •  Southfield, Michigan  •  4 months ago
    Oil prices are controlled in large part by the excessive oil speculation of investment banks like Goldman Sachs and others. The filthy greed of bidding up the furures market for oil, food and clothing commodities cost the American people more and more for the essentials they need to raise their families. This selfishness is ruining America for the vast majority Americans while a very few make out like bandits. This is what we call freedom and democracy today, when in fact all it is, is corruption.
    • MLL 4 months ago
      Government needs to fix this problem once and for all. thats why we should tell them in november, if we make it that long.
  • Silent Death  •  4 months ago
    Bend over grab your ankles summer will be here soon
  • trish  •  Kettle Falls, Washington  •  4 months ago
    I hear alot of you putting down obama for the high oil,,he promised us he would do something,he has no power to control oil,they control him,and the rest of the world,they have us bent over the old barrel,and are putting it to us,,,we are powerless to do a darn thing about it,,only if we stand up as a people,and protest will anything be done,,,but,some have tried that already with the wal street protest,and what did it get them,,hammered,put in jail,,,big money isnt going to let anything come between them and there bucks,,they tell the goverment what to do,and poof goes anyone that stands up for whats right,,,
    • Darrell 4 months ago
      Hew re-appointed bernenke to chairman of the fed. His QE programs are a major cause of this problem. Bernenke was a member of the Bush admin and was first appointed to the fed by Bush. Obama kept the idiot. After all the crap words about how bad Bush econ policies were, he kept the guy.
  • trish  •  Kettle Falls, Washington  •  4 months ago
    No matter how much we #$%$ about oil,the price isnt going to come down unless something terrable happens,,,goverment isnt going to do a thing,there in bed with oil,and the saudis who have been screwing us for decades,,heck most of congress has oil stocks,so why in hell would they want to see oil come down,they have a good job,and great pay,,,and us,,well,,,as bush said about his tax cuts it will dribble down,,yep,,right down big oils leg,,thats what we get,,,and now,another year has started,one in which they say oil will go up and up and up,,,as we lose more jobs,wages cut,,hours cut,,and the middle class is going by by,,,,soon it will be just the rich,and the poor. But in my mind,I believe that is what the big money folks want,,a society,controlled by them,to keep us on our knees living from pay day to pay day,,,if we can even do that. oil goes up,prices goes up,everything we need to live with goes up,,wages go down,hours go down,,,and with it,you and I go down,,,america,the land of the free,,ya,right,,,the land of greed,the land of the rich by the rich shall not perish from this earth,,not as long as they can work us out of every dime we have,,
  • steve  •  5 months ago
    And here we are, year after year, not producing enough oil and gas from our own vast deposits, while having increased imports to 65 percent of domestic needs.
  • Morky  •  Waukesha, Wisconsin  •  4 months ago
    The price of Gasoline and Diesel are key factors to our countries economic stability and security. With that in mind the government should buy or build Oil refineries to produce and sell gasoline, diesel fuel and heating oil. With the profits from the refineries they then can solve the deficit problem. This works for the Oil countries why not us. The US postal service competes with UPS and Fed ex right now so then the government refineries would compete with other refineries (free enterprise stays intact ). Right now the refineries are regulating the supply to just meet the demand creating the current pricing any excess they ship out of the country. What happen to the good old fashion price wars for gasoline instead we have good old price fixing.
    The US postal service would benefit from fixed fuel prices. They might actually survive.
  • Pat  •  Dayton, Texas  •  4 months ago
    Time for a little Water Boarding of ol G. W. and his crooked side kick Dick Cheney to find out the truth of that secret meeting Cheney had when oil was $40 a bbl and the next day shot up to $60 a bbl. Why not people ? They deemed it necessary to get the truth out of terrorist and I consider them and the whole rest of our elected officials terrorist against the American people . Use their own rules to get to the bottom of what' s been to the American people as well the rest of the world !
  • Kaos  •  Plainfield, Connecticut  •  4 months ago
    Saudis value oil at 75-85 a barrel the rest is pure speculation. So the 15-25 higher is for people to use to make more money. Gas stays the same ......heating fuels are not going down with the warm winter. We got some problems in this sector. Kinda like Congress......
  • steelerman  •  Miami, Florida  •  4 months ago
    Consumption is way down, supplies are way up, prices should be at $70 - $80 a barrel but are at $100 a barrel. Speculators are getting rich on the backs of your misery.
  • trish  •  Kettle Falls, Washington  •  4 months ago
    No matter how much we #$%$ about oil,the price isnt going to come down unless something terrable happens,,,goverment isnt going to do a thing,there in bed with oil,and the saudis who have been screwing us for decades,,heck most of congress has oil stocks,so why in hell would they want to see oil come down,they have a good job,and great pay,,,and us,,well,,,as bush said about his tax cuts it will dribble down,,yep,,right down big oils leg,,thats what we get,,,and now,another year has started,one in which they say oil will go up and up and up,,,as we lose more jobs,wages cut,,hours cut,,and the middle class is going by by,,,,soon it will be just the rich,and the poor. But in my mind,I believe that is what the big money folks want,,a society,controlled by them,to keep us on our knees living from pay day to pay day,,,if we can even do that. oil goes up,prices goes up,everything we need to live with goes up,,wages go down,hours go down,,,and with it,you and I go down,,,america,the land of the free,,ya,right,,,the land of greed,the land of the rich by the rich shall not perish from this earth,,not as long as they can work us out of every dime we have,,
  • trish  •  Kettle Falls, Washington  •  4 months ago
    big oil run the world,this goverment knows how to bring back our economy,but not with oil with there foot on our necks, But our goverment is in bed with them,and all big money,they would rather make money to put in there pockets,than to see this country healthy,,,,the days of a strong america are over,now all that matters is,strong money,,to hell with us,,,
  • Christopher  •  Cicero, Illinois  •  4 months ago
    oil and gas prices-they were stable last few weeks-in the last couple days went up 20 cents on average-whats up with that.if the economy was on the upswing-i wouldnt have too much trouble with some increase-but the economy is sputtering-no need for an increase now.
  • timothy b  •  Milwaukee, Wisconsin  •  5 months ago
    they need to stabelize the barrel at 60.00, bring the price down and then leave it!
  • dozer  •  Wallingford, Connecticut  •  4 months ago
    Bush's fault. sarcasm for those w/o a clue
  • Anonymous263  •  4 months ago
    US demand is down 2.5% and has dropped every year for the last five years. Meanwhile oil and gas prices continue to bump along at record highs, the United States has become a net exporter of oil. That is right -- the US is now exporting more oil than it uses.

    Given the above, how could oil and gas prices set record highs for the year? Well, "they" (i.e. the US propaganda machine of unattributed news stories) blames escalating demand from China. Well guess what America? China in now entering a recession and closing factories at record rates.

    So then WHY are oil prices so high while the media continues to make excuses of "increased demand". American, the answer is simple -- you are no longer in control of your government and regulators. Market manipulation, propaganda and government bribery are now commonplace tools for increasing corporate profits. And propaganda works. Dollars -- not votes -- currently control your government.

    America, you must accept that your government is now forever for the few and privileged -- or get money and corporation out of elections.
  • ripped off  •  Lynbrook, New York  •  4 months ago
    go to pickens plan, sign up, and let your voice be heard.
 
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