Experts expect no decline in oil prices in the New Year and have given up calling for lower prices. A very tight market, vulnerable to supply shocks and disruption is expected to continue. New York oil futures are estimated to average US$60 a barrel in Q1-06, and average at US$58 for 2006.
Rising fuel demand, spearheaded by the growing Chinese economy, caused oil futures to more than tripled since November 2001. Hurricanes Katrina and Rita, the Iraq War, and civil unrest in Venezuela and Nigeria have contributed to high prices. Prices rose 33% in 2005, almost matching a 34% gain in 2004. Oil averaged US$56.69 in 2005, US$17 more than in 2004 and the highest in two decades of New York trading.
02-Jan-06 
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