A Review of the Nigerian Energy Industry

Mixed end to 2012 for oil futures

02 January 2013, Newswire – Brent crude futures ended 2012 higher, marking their fourth consecutive yearly gain, while US crude prices finished the year lower, snapping three straight years of gains.

Brent crude prices ended the 2012 up $3.73, or 3.5%, and also posted a record average daily price for a year as turmoil in the Middle East and oil production problems in the North Sea in 2012 supported prices, according to Reuters.

Brent February crude on the IntercontinentalExchange on rose 49 cents, or 0.44%, to settle at $111.11 a barrel on New Year’s Eve.

For the fourth quarter, Brent crude posted a loss of $1.28, or 1.1%, after gaining nearly 15% in the previous quarter.

Meanwhile, US crude futures finished 2012 with a full-year loss of $7.01 or 7.1%, on the back of rising domestic oil production and tepid demand, Reuters reported.

US February crude on CME Group’s New York Mercantile Exchange on Monday rose $1.02, or 1.12%, to settle at $91.82 a barrel in the year-end session.

For the fourth quarter, US crude posted a small loss, ending down 37 cents, or 0.4%, after posting an 8.2% gain in the previous quarter.Brent crude futures ended 2012 higher, marking their fourth consecutive yearly gain, while US crude prices finished the year lower, snapping three straight years of gains.

Brent crude prices ended the 2012 up $3.73, or 3.5%, and also posted a record average daily price for a year as turmoil in the Middle East and oil production problems in the North Sea in 2012 supported prices, according to Reuters.

Brent February crude on the IntercontinentalExchange on rose 49 cents, or 0.44%, to settle at $111.11 a barrel on New Year’s Eve.

For the fourth quarter, Brent crude posted a loss of $1.28, or 1.1%, after gaining nearly 15% in the previous quarter.

Meanwhile, US crude futures finished 2012 with a full-year loss of $7.01 or 7.1%, on the back of rising domestic oil production and tepid demand, Reuters reported.

US February crude on CME Group’s New York Mercantile Exchange on Monday rose $1.02, or 1.12%, to settle at $91.82 a barrel in the year-end session.

For the fourth quarter, US crude posted a small loss, ending down 37 cents, or 0.4%, after posting an 8.2% gain in the previous quarter.

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  • The mixed end is symbolic of the volatility associated with oil trading in the international market. It is also instructive for resource rich and dependent nations to note that not much can be accomplished by remaining solely dependent on resources such as hydrocarbons for the growth, development and ultimate stability of their economies. In any case, grappling with the resource curse is more than enough to keep the leadership of these resource rich countries occupied, not to mention trying to tackle the volatility associated with trading in the international market.