Oil gains 78 per cent in 2009
02 Jan 2010
New York: Oil prices notched the biggest annual gain in a decade, climbing a massive 78 per cent in 2009 to finish the year above $79 a barrel on Thursday. The gains have been registered even as markets around the world begun to bounce back from a global economic crisis.
Though oil on Thursday was still at the halfway mark from the all-time high of $147.27, registered in July 2008, the rise in US oil futures is the sharpest annual percentage gain since 1999.
US crude for February delivery settled up 8 cents at $79.36 a barrel on 31 December 2009, compared with a close of $44.60 on 31 December 2008.
The annual average 2009 price was $62.
Analysts note that momentum in prices seems to run out near $80 with the market overcome with doubts about the viability of the market recovery currently under way. For 2010, analysts expect oil prices to consolidate on 2009, as demand continues to gain around the world.
"We expect 2010 to be a year of transition between the demand concerns of 2009 and the supply concerns of 2011, with in addition geopolitical developments having a heightened importance," Barclays Capital said in a research note.
Though crude inventories have slid in the past four weeks, stocks are still far above normal levels. Also there were indications that crude oil supplies from some areas were increasing.
