CNN reports that oil neared $80 a barrel as the year came to an end. The prices are up because crude oil inventories have been falling.
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.
This is not a good sign for drivers and businesses that rely on cheap gas prices. The article says oil is expected to climb even higher in 2010. This means gas price will climb a little closer to 2008 highs when the summer driving season hits this year. It is going to be hard on Americans who are already struggling because of the weak economy. It is also going to put additional strain on consumer spending.
