Crude Ends Volatile Year Below $45

That decline, however, didn't signal any improvement in labor conditions. The drop -- while bigger than economists expected -- was partly related to seasonal adjustment difficulties and reflected some out-of-work people not making it to unemployment offices to file claims over the Christmas holiday, analysts said.

The national average at the pump ended the year at $1.61 a gallon, according to auto club AAA, the Oil Price Information Service and Wright Express. Prices are down 20.3 cents from a month ago and $1.426 from a year ago.

The U.S. government reported that crude stockpiles rose again last week despite expectations for a steep drop, suggesting demand continues to be weak. Gasoline reserves jumped less than forecast.

For the week ended Dec. 26 crude inventories rose by 500,000 barrels.

Analysts polled by Platts, the energy information arm of McGraw-Hill Cos., expected a draw of 1.75 million barrels.

In London, February Brent crude jumped $5.44 to end the year at $45.59 on the ICE Futures exchange.

In other Nymex trading, gasoline futures rose 12.29 cents, to settle at $1.01 a gallon. Heating oil rose 11.77 cents to settle at $1.4057 a gallon, while natural gas for February delivery tumbled 23.7 cents to settle at $5.622 per 1,000 cubic feet.

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Associated Press writers Jeannine Aversa in Washington, George Jahn in Vienna, Austria, and Alex Kennedy in Singapore contributed to this report.