Oil ended a volatile year modestly higher as investors looked ahead to a potential rebound in Chinese demand next year.
West Texas Intermediate futures, for delivery this month, staged a last-minute rally of 1.9 percent in the final session of last year to close at US$80.26, marking a 2.37 percent weekly and a 4 percent annual gain.
The finish was a far cry from the triple digits seen earlier this year after Russia’s invasion of Ukraine upended global supplies and sent prices soaring.
Photo: REUTERS
Brent Crude for delivery next month closed up 0.09 percent at US$85.91 on Friday, a 2.94 percent gain from a week earlier.
The global Brent Crude benchmark last year traded in a US$64 range, the largest since 2008, and at times experienced the biggest weekly swings on record.
Such stomach-churning volatility proved too much for many traders, curbing liquidity and further driving sharp swings. At its peak, oil futures traded past US$139, but the gains largely evaporated given concerns that central bank efforts to curb inflation would bite into growth and uncertainty over China’s demand prospects.
China is tackling a surge in COVID-19 cases, and fears are mounting about a fresh global outbreak of the disease, but there is optimism that demand could rebound in the world’s top crude importer.
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