Debt Free News

Oil Prices End 2006 Where They Started

December 29,2006

It is just now being reported to our debt free news department that the price of oil will leave the year at the same price it entered the year. It is the in between that has us all up in arms about the price we pay at the pump – after all, we are all trying to live a debt free lifestyle and when the price of gas is high we are upset.

Today, the price for a barrel of oil sits at $61. This means the average cost per barrel for the entire year of 2006 is at $66. When you consider the price a barrel cost back in January of this year – they are about the same. As debt free lifestyle consumers, it has been a rough ride to the gas pump for the year of 2006. All this, while the big oil companies have record breaking earnings.

In fact, since 2001, we have seen oil prices rise each year.

There are many financial analysts that will tell our debt free news article readers that they are in the belief that crude oil futures in 2007 will continue to rise and fall but remain about the sixty dollar a barrel level. This is simply due to the fact that several worldwide markets demand more oil. Look at the rise in growth in Asia and the Middle East alone. We have also seen OPEC decrease supplies creating oil market instability in such energy rich areas as Iraq and Nigeria.

Here in the US, we have seen a slow down in our economy along a production spike from non OPEC areas in the world that could help keep prices below this years average. Additionally there are estimates less refining hold ups that we witnessed this year. If this turns out to be true, we could also see that alone help keep oil cost down. Many analysts are saying that we won’t see a huge increase, but we will not see any huge decrease either. Not like back in 1999 and 2000 that is.

Per gallon, our cost breaks down like this: The average price of gas per gallon in the year 2006 is about $2.34. This is fourteen cents higher than 2005. As we see high prices at the pump in the summer months typically, some analysts think we could see the near three dollar price again, but not all year. In fact, they believe that the price could be higher in the summer months, but that the rest of the year in 2007 should see prices lower than 2006. This is a pretty good sign as far as we are concerned here at this debt free site.

There are also people that will tell you that the Eastern part of the US could see higher prices in gas but not as high as the Western part of the US.

Here at this debt free site, we are thinking that consumer worry about production hold ups could lead gas stations to raise the price of their gas as well. We are looking for a better year when the war and hurricanes are not a factor in the price we pay for gas.

When you look at the fact that major oil companies such as Exxon Mobil, Chevron, and Conoco Phillips were benefited from these spike in the price of oil this year – earning them collectively billions of dollars more than even a year ago, Congress should be on their feet to balance out the global issues surrounding the price of oil in general.