Forget Cheaper Oil in 2006?

Only a month ago chances seemed good that 2006 would break the streak of five consecutive years of rising oil prices. But not anymore. Less than three weeks into the new year, the prospect that the average price per barrel for light, sweet U.S. crude in 2006 would fall below last year’s nearly $57 per barrel look considerably diminished.

Political turmoil in Iran and Nigeria, two key exporters, combined with the Bush Administration’s determination to crack down on Tehran’s nuclear program are to blame. These factors have sent crude prices back toward the $70-plus high-water mark hit last September when hurricanes battered oil installations in the U.S. Gulf Coast.

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