Oil Prices Gush to Two-Year High
Jan 3rd 2011 6:30PM
Updated Jan 3rd 2011 6:39PM
Oil prices touched a two-year high Monday on tighter inventory and expectations that U.S. economic growth will boost demand this year.
Oil for February delivery touched $92.58 a barrel, up $1.20 from last week's close, before closing at $91.65. Only about a month ago, oil had been trading around $81 a barrel.
Analysts expect the prices to continue to grow, with some predicting that oil could hit $100 a barrel early this year. U.S. commercial crude inventories totaled 339.4 million barrels for the week ended Dec. 24, down 1.3 million barrels from a week earlier, according to the U.S. Energy Information Administration.
Higher oil prices also are hiking up gas prices. The national average gas price for regular unleaded is $3.07 a gallon, up 2 cents from a week ago and 14% from a year ago, according to the AAA auto association.