Oil above $96, eyes biggest gain this decade

LONDON (Reuters) – Oil rose above $96 a barrel on Monday, heading 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.

…With prices starting the year at around $61, oil is now up almost 58 percent. It hit an all-time high of $99.29 on November 21 as a falling U.S. dollar and thinning inventories stoked investor interest.


Oil’s rally is entering its seventh year, more than quadrupling its market value of below $20 at the start of 2002.

If prices hold, they will register their best performance for a front-month contract since 1999, when oil prices more than doubled from a $10 low.

Oil is set to average around $72.30 this year, up about 9 percent from 2006.

Reuters