NEW YORK - Oil started the new year trading above $81 a barrel, almost double what it fetched at the beginning of 2009 even though the United States is using much less.
Prices, which have been propped up by a weak dollar, will get even more support as winter weather chills the country.
China and other developing nations are using more crude to fuel their burgeoning manufacturing industries, and that can push US prices higher, as well.
Gasoline, heating oil, and other fuels are already heading higher and may continue to do so as the market tests how much people are willing to pay, analysts said.
Benchmark crude for February delivery climbed $2.15 to settle at $81.51 a barrel on the New York Mercantile Exchange.
The price reached as high as $81.68, and it could overtake the 2009 high of $82 a barrel this week if the government reports a large drop in supply.
Natural gas jumped nearly 6 percent, adding 31.2 cents to settle at $5.884 per 1,000 cubic feet. It has surged as snow and frigid temperatures sweep through the United States.
Meanwhile, pump prices for gasoline continued to climb, adding less than a penny overnight to bring the national average to $2.663 yesterday, according to AAA. That is a couple cents more than last month and about $1 more than last year at this time.
In other Nymex trading in February contracts, heating oil rose 7.49 cents to settle at $2.1905 a gallon and gasoline gained 5.15 cents to settle at $2.1044 a gallon.