Oil heads for biggest annual gains since 2009

Oil pumping jacks, also known as “nodding donkeys”, operate in an oilfield near Almetyevsk, Russia. (Bloomberg)

SULAIMANI (ESTA) — Oil prices slid on Friday but were set to post their biggest annual gains in 12 years, spurred by the global economic recovery from the COVID-19 slump and producer restraint, even as infections surged to record highs around the world.

Brent crude futures fell 2 cents to $79.51 a barrel at 0636 GMT, while U.S. West Texas Intermediate (WTI) crude futures dropped 8 cents to $76.91 a barrel.

Brent is on track to end the year up 53%, while WTI is heading for a 57% gain, the strongest performance for the two benchmark contracts since 2009, when prices soared more than 70%.

Both contracts touched their 2021 peak in October with Brent at $86.70 a barrel, the highest since 2018, and WTI at $85.41 a barrel, the loftiest since 2014.

Global oil prices , are expected to rise further next year as jet fuel demand catches up.

“We’ve had Delta and Omicron and all manner of lockdowns and travel restrictions, but demand for oil has remained relatively firm. You can attribute that to the effects of stimulus supporting demand and restrictions on supply,” said Australian brokerage firm CommSec’s Chief Economist Craig James.

However, after rising for several straight days, oil prices stalled on Friday as COVID-19 cases soared to new pandemic highs across the globe, from Australia to the United States, stoked by the highly transmissible Omicron coronavirus variant.

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