Oil Is on Track to Post Its Largest Annual Gain at Least Since 2016 | Latest Update!
New York City, Dec. 31 – Global economic recovery from the COVID-19 pandemic slump and producer restraint helped lift oil prices on Friday, but they were still expected to post their biggest annual gains since at least 2016.
Futures for both Brent and WTI crude dropped by 70 cents, or 0.9 percent, to $78.85 and $76.15 per barrel, respectively, at 10:16 a.m. EST (1516 GMT).
With a projected 52 percent gain for Brent and a projected 57 percent gain for WTI, the benchmark contract is on pace for its best year since 2009, when prices rose by more than 70 percent.
In October, both contracts reached their 2021 peak, with Brent at $86.70 a barrel and WTI at $85.41 a barrel, the highest since 2014, respectively.
As jet fuel demand grows, global oil prices are expected to rise even higher in the following year.
As CommSec’s Chief Economist Craig James noted, despite the lockdowns and travel restrictions that have occurred due to Delta and Omicron, “demand for oil has remained relatively firm.”
“Stimulus measures supporting demand and supply constraints can be attributed to this.”
Omicron coronavirus variant COVID-19 has stoked pandemic levels across the globe, with cases rising to new pandemic highs in Australia and the United States. However, oil prices stalled on Friday after rising for several straight days.
It is predicted that infection rates will rise as a result of increased holiday travel, New Year’s celebrations, and the reopening of schools after winter breaks, according to health experts in the US. to read more
Brent crude is expected to average $73.57 per barrel in 2022, according to a Reuters poll of 35 economists and analysts, which is about 2% lower than the consensus price of $75.33 in November.
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Since the August poll, this is the first decrease in the 2022 price forecast.
Prices fell earlier this week as production problems in Nigeria and Ecuador were alleviated.
When OPEC+ members meet on Jan. 4, they are likely to stick to their plan to increase supply by 400,000 barrels a day in February, according to four sources familiar with the matter.