Oil tops $78/barrel -- twice that of a year ago

In this Nov. 2, 2009 file photo, a Hess Corp. oil storage facility is shown in this

aerial photo of in Newark, N.J. The price of a barrel of oil is now more than $78

– about double the price of a year ago.

Energy traders are blaming the cold weather for a late-year rise in the prices of crude oil and natural gas.

Yes, the freeze that has extended from the Midwest to the mid-Atlantic states is helping to boost demand for anything that takes the chill out of the house.

The result: Natural-gas prices have soared 78 percent in the past 30 days, and even home heating oil is up 2.5 percent. The price of a barrel of oil is now more than $78 – about double the price of a year ago.

Rising energy costs hit consumers directly in the pocketbook. Most Americans have to spend money to drive their car and heat their homes.

“Energy is a major expense, especially this time of the year,” says David Wyss, chief economist for Standard & Poor’s in New York. “We’re looking at substantially higher costs for the average American.”

http://www.csmonitor.com/USA/2009/1224/Oil-prices-top-78-a-barrel-double-the-cost-of-a-year-ago