The prices of Oil finished the year 2011 up 13% amid concerns, which restricted a year of conflict and disturbances in the Middle East and Africa that overpowered apprehensions about the well being of economies of the big consuming nations.  The recent menace by Iran to close down the Strait of Hormuz revealed another geopolitical danger to markets that had throughout been engrossed the year under unrest of the Arab Spring, most significantly closing exports member of OPEC, Libya.

The problems in supply assisted to raise the price of international benchmark Brent Crude by 13.3% during the year at an average of about 111 USD per barrel for 2011, concealing the earlier annualized record of around 100 USD that struck in 2008 and registering the third year of yearly gains.

The 2011 gains in prices have been contradicting to exceedingly unpredictable environment for pricing that saw drop in (U.S.) values to lowest level of 75 USD a barrel during October following reaching to about 115 USD in May, according to an analyst.

The prices of U.S. crude climbed 8.2% by the close of 2010, outmatching most of the other commodities and the average price has been around 95 USD a barrel for the year.

According to market analysts, the issues that assisted in capping the gains in the prices in 2011 might persist in the year 2012.

Whereas, the examination of 75 USD range in the year 2012 could seem out of reach due to a range of geopolitical suspicions.

The heating oil futures of U.S. have been the top player on the index, collecting force from surging U.S. exports and threatening the closure of three of Petroplus’ (PPHN.S) and five refineries in Europe following this week lenders revoked its credit lines.  Heating oil rose more than 15% in 2011 and U.S. RBOB gasoline futures climbed by over 9%.

On Dec. 30^th (Friday) there is a decline of 63 cents in crude to 107.38 USD a barrel, having swayed from 106.62 USD to 108.25 USD during the light holiday trade, concerning persisting European crisis and slowdown in Chinese factories.  In February crude declined 82 cents, to settle at 98.83 USD per barrel, having swayed from 98.61 USD to 100.16 USD.

The U.S. prices are in the range of 95 USD to 100 USD range, whereas, weak reports from China provided some pressure on oil.