Crude Oil Is Little Changed in London, Ending Year With Gain of 34 Percent

Dec. 31 (Bloomberg) -- Crude oil futures were little changed in London in limited trading, ending the year with a 34 percent gain after surging earlier this week on bombings in the capital of Saudi Arabia, the world's biggest oil exporter.

Oil rallied Dec. 29 on the attacks in Riyadh, which led to the deaths of several suspected al-Qaeda terrorists. Most of those price gains were lost yesterday as it became clear that Saudi oil and government facilities were unharmed.

``The security premium is what moved prices up earlier in the week,'' said Renzo Mejia, a commodities broker at Sucden (U.K.) Ltd., a London futures brokerage. ``Prices would recover again should there be more such events in Saudi Arabia or Iraq.''

Brent crude for February settlement closed 9 cents up at $40.46 a barrel on London's International Petroleum Exchange, ending the year with a 34 percent gain. The IPE closed early today at 1 p.m. and New York markets were closed. The 2004 average price for Brent was $38.04, up 34 percent from 2003.

Bloomberg

We may not be at peak yet, but I suspect we're in the process of plateauing. And the consequences are incalculable.

F'r instance...the projected die-off of two-thirds of the Earth's present population...

But I expect that you are right that we have only just begun.