Oil prices fell on Friday, but are poised to post their biggest annual gains since 2009, spurred by the global economic recovery from the COVID-19 crash and OPEC+ restrictions, even as infections rise to record highs worldwide.
Brent crude futures fell 31 cents, or 0.4%, to $79.22 per barrel at 0427 GMT, while West Texas Intermediate (WTI) crude futures fell 37 cents, or 0.5%, to $76.62 a barrel.
While Brent is on track to close the year with a 53% increase, WTI is on track to a 57% increase, the strongest performance for two benchmark contracts since 2009 when prices rose more than 70%. Both contracts peaked in October 2021, with Brent at $86.70 per barrel, the highest since 2018, and WTI at $85.41 per barrel, the highest since 2014.
Global oil prices are expected to rise further next year as jet fuel demand catches up.
Restrictions were experienced throughout the year due to Delta and Omicron variants, but oil demand remained relatively firm. You can attribute this to the effects of demand-supporting incentives and constraints on supply.
U.S. health experts have warned Americans to prepare for serious disruptions in the coming weeks, as infection rates worsen as increased holiday travel, New Year’s celebrations and schools reopen following the winter holidays.
The Organization of the Petroleum Exporting Countries, Russia and their allies will likely stick to their plan to add 400,000 bpd in February when they meet on Jan.