In a turbulent year marked by tight supplies due to the Ukraine war, a strong dollar, and waning demand from the world’s top crude importer China, oil prices eked out a small increase on Friday and were on track to record their second consecutive annual gains.
By 04:45 GMT, Brent crude futures were up 20 cents, or 0.2%, to $83.66 per barrel after closing 1.2% lower the previous session.
After increasing by 50.2% in 2021, Brent appeared poised to finish the year with a 7.6% gain. Following Russia’s invasion of Ukraine, which raised concerns about supply and energy security, prices soared in March to a peak of $139.13 per barrel, a level not seen since 2008.
After closing 0.7% lower on Thursday, U.S. West Intermediate crude was at $78.63, up 23 cents, or 0.3%. Following a 55% increase the previous year, it is expected to rise 4.5% in 2022.
Oil prices are supported by increased year-end travel and Russia’s ban on the sale of crude and oil-related products, but a weaker economy next year will cause consumption to decline, according to CMC Markets analyst Leon Li.
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