Oil Climbs Above $92 a Barrel – Gas Could Rise Above $5 a Gallon by 2012
Oil climbed to above $92 a berrel today.
The former President of Shell announced last week that gas prices could likely rise about $5 per gallon by 2012.
Oil extended a rally above $92 a barrel on Monday, spurred by expectations that a global economic recovery is gathering strength and as market bulls set their sights on $100 a barrel.
U.S. crude was trading 77 cents higher at $92.15 a barrel by 1108 GMT (6:08 a.m. ET), just off a session high of $92.20, its highest since October 2008. It settled at $91.38 on Friday, marking an annual gain of around 15 percent and the highest year-end price since 2007.
Brent was up $1.20 a barrel at $95.95, off an intraday peak of $96.04, also the highest since early October 2008.
Trade was thinned by a public holiday in the United Kingdom but could take direction later on Monday from a survey by the Institute for Supply Management (ISM) -- a measure of U.S. national factory activity.
It was expected to show a slight expansion in the manufacturing sector, reinforcing the view the economy in the world's largest oil consumer is expanding and therefore driving up energy demand.
Despite the surge in prices, the Obama Administration is still blocking new drilling projects in the Gulf of Mexico.