Oil is set to end a volatile year modestly higher as investors look ahead to a potential rebound in Chinese demand next year and brace for the possibility that less Russian crude will make it to buyers.
West Texas Intermediate futures rose above $79 a barrel and are up about 5% for the year after swinging more than $60 over the course of 2022. China is currently tackling surging virus cases and fears are mounting about a fresh global outbreak, but there’s optimism demand will eventually rebound in the world’s top crude importer.
The global Brent benchmark has traded in a $64 range, the largest since 2008, and at times experienced the biggest weekly swings on record. At their peak shortly after Russia invaded Ukraine, prices surged past $139, but the gains have largely evaporated as fears mount of a global economic slowdown.
Meanwhile, gasoline futures rose to a one-month high in intraday trading in New York. US four-week average demand for the fuel jumped by more than 3% last week, the biggest weekly gain since early August, according to data from the Energy Information Administration. This helped trimmed national stockpiles and pushed pump prices higher.
Prices
- WTI for February delivery rose 80 cents to $79.20 a barrel at 10:07 a.m. in New York.
- Brent for March rose $2.20 to $84.46 a barrel.
Updated 17:15 30/12/22.