Oil posts biggest yearly rise since 2016 - Reuters

Oil posts biggest yearly rise since 2016 - Reuters:

Oil prices fell 1% on Tuesday, the last trading day of the decade, but notched the biggest annual gain in three years, supported by a thaw in the prolonged U.S.-China trade war and ongoing supply cuts from major oil producers.

Brent gained about 23% in 2019 and WTI rose 34%, their biggest yearly gains in three years, backed by the recent breakthrough in the trade talks and output cuts pledged by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.

Forecasters do not expect oil prices to move sharply in either direction next year. Brent crude is expected to hover around $63 a barrel, a Reuters poll showed on Tuesday, down modestly from current levels, as OPEC production cuts offset weaker demand.

Over the past year, increased U.S. oil output offset the supply reductions undertaken by OPEC, led by Saudi Arabia and stemming from U.S. sanctions on Venezuela and Iran. Lackluster demand, including in developed economies, remains a primary concern headed into 2020.

Brent crude LCOc1 fell 67 cents, or 1%, to settle at $66.00 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 fell 62 cents, or 1%, to settle at $61.06 a barrel.

On Tuesday, trade volumes were low with many market participants away for year-end holidays, amplifying the market’s moves.