Oil rose above $96 a barrel today, heading for its biggest annual gain this decade as dwindling fuel stocks and growing concern over political turmoil offset the impact of a softening US economy.
US crude climbed 12 cents to $96.12 a barrel by 1155 GMT, while London Brent crude gained 42 cents to $94.30.
With prices starting the year at around $61, oil is now up almost 58 per cent. It hit an all-time high of $99.29 on November 21st as a falling US dollar and thinning inventories stoked investor interest.
Oil's rally is entering its seventh year, more than quadrupling its market value of below $20 at the start of 2002.
If prices hold, they will register their best performance for a front-month contract since 1999, when oil prices more than doubled from a $10 low.
Oil is set to average around $72.30 this year, up about 9 per cent from 2006.