Oil prices rallied for a seventh straight session and neared $80 a barrel, as the market eyed the biggest annual gain in a decade.
Crude oil for February delivery rose 48 cents to $79.76 a barrel. Prices have spiked 9% in the last six sessions. During the last year, prices have climbed 78%, the largest yearly percentage gain since 1999, when prices jumped 112% during the year.Oil prices have recently pushed higher on falling crude inventories. A government report Wednesday showed supplies declining for a third straight week.
Prices were also supported by a softer dollar, which edger lower against the euro and the pound. Crude oil, like other commodities, is priced in dollars, and a weaker greenback tends to boost prices.
Oil prices are expected to head higher in 2010, fluctuating between $85 and $95 a barrel, according to Mike Fitzpatrick, vice president of energy at MF Global.
"If we see steady improvements in the business environment, demand for energy will grow and that will result in rising oil prices," Fitzpatrick said.
He added that mounting geopolitical tensions in Iran and conflicts in other regions with large reserves of oil could could also drive prices higher.
"If anything erupts that disrupts the supply of oil, prices could skyrocket depenThe rise of oil prices has also lifted gas prices, which have climbed more than 5 cents in the last week and more than $1, or 63%, in 2009.
Demand for gasoline has also increased during the holiday season, said AAA spokeswoman Christie Hyde, which in turn boosts prices.
Earlier this month, the motorist group projected holiday travel will rise 3.8% this during the holiday season. AAA estimated that the number of people flying will rise almost 3%, while those traveling by car will jump 4.4%.
The national average price for a gallon of regular unleaded gas increased to $2.639, up 1.6 cents from the previous day's $2.623, according AAA. This is the seventh consecutive increase.
Still, the average is $1.47, or 36%, below the highest daily average price of $4.114, posted July 17, 2008.
The highest gas prices are in Alaska, averaging $3.384 a gallon, and the lowest are in Wyoming, averaging $2.442. ding on the severity of the problem," Fitzpatrick said
Crude oil for February delivery rose 48 cents to $79.76 a barrel. Prices have spiked 9% in the last six sessions. During the last year, prices have climbed 78%, the largest yearly percentage gain since 1999, when prices jumped 112% during the year.Oil prices have recently pushed higher on falling crude inventories. A government report Wednesday showed supplies declining for a third straight week.
Prices were also supported by a softer dollar, which edger lower against the euro and the pound. Crude oil, like other commodities, is priced in dollars, and a weaker greenback tends to boost prices.
Oil prices are expected to head higher in 2010, fluctuating between $85 and $95 a barrel, according to Mike Fitzpatrick, vice president of energy at MF Global.
"If we see steady improvements in the business environment, demand for energy will grow and that will result in rising oil prices," Fitzpatrick said.
He added that mounting geopolitical tensions in Iran and conflicts in other regions with large reserves of oil could could also drive prices higher.
"If anything erupts that disrupts the supply of oil, prices could skyrocket depenThe rise of oil prices has also lifted gas prices, which have climbed more than 5 cents in the last week and more than $1, or 63%, in 2009.
Demand for gasoline has also increased during the holiday season, said AAA spokeswoman Christie Hyde, which in turn boosts prices.
Earlier this month, the motorist group projected holiday travel will rise 3.8% this during the holiday season. AAA estimated that the number of people flying will rise almost 3%, while those traveling by car will jump 4.4%.
The national average price for a gallon of regular unleaded gas increased to $2.639, up 1.6 cents from the previous day's $2.623, according AAA. This is the seventh consecutive increase.
Still, the average is $1.47, or 36%, below the highest daily average price of $4.114, posted July 17, 2008.
The highest gas prices are in Alaska, averaging $3.384 a gallon, and the lowest are in Wyoming, averaging $2.442. ding on the severity of the problem," Fitzpatrick said
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