Oil clocks highest yearly average in history

New York: Oil prices in 2012 averaged $112 a barrel, the highest yearly average in history, said Fatih Birol, chief economist at the International Energy Agency.

Oil demand growth this year will be almost entirely driven by India, China and the Middle East, but sustained high prices will continue to pose a risk to the global economy, he said. He added that moves by major oil producers to invest in renewable energy were important to maintain levels of oil exports. Countries in the Middle East could produce 10% of their energy from renewable sources by 2035, he added.