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January 03, 2006

Oil Price Spike Peak Oil

Oil prices finished 2005 above $61, an increase of 40% for the year. Natural gas prices surged an astonishing 80% on the year.

And oil prices have spiked sharply higher today. BusinessWeek:

Light sweet crude oil for February delivery was up $2.46, or 4 percent, to $63.50 a barrel in afternoon trade on the New York Mercantile Exchange. [Emphasis added]

Short-term fluctuations like today's spike prove nothing, but the longer-term trend is clear. High prices are here to stay, and price volatility is a new fact of life.

Posted by Jonathan at January 3, 2006 02:40 PM  del.icio.us digg NewsVine Reddit YahooMyWeb