Oil prices are set to close the year up more than 12%, despite a slight decline today, due to a resurgence in global demand, an unusually cold winter and falling inventories.
Crude was also on track to average $79.60 a barrel for the year, second only to 2008's record average of $99.75.
Strong demand for raw materials, especially in China, is expected to push oil even higher next year, analysts say, although the global recovery is still fragile.
After rallying to a 26-month high of $91.88 on Monday, US crude was down 30 cents at $89.54 a barrel by lunchtime. Brent crude fell 40 cents to $92.69.
US crude stockpiles fell for the fourth straight week last week, but the drop was less than expected and put downward pressure on prices. The fall in petrol stocks was much bigger than expected, possibly signalling rising consumption as the world's largest economy recovers from recession.
