Oil prices fluctuated wildly in 2022, boosted by supply shortages in light of war in Ukraine and then tumbled by weak demand from China, the world’s largest oil importer, and fears of an economic downturn, but closed the year with an annual gain for the second consecutive year.
Brent crude rose in the final trading sessions of the year on Friday by about $2.45 a barrel, or about 3%, to reach $85.91 a barrel at settlement.
US West Texas Intermediate crude reached $80.26 a barrel At the time of settlement, an increase of $1.86, or 2.4%..
For the full year, Brent crude is up about 10% after jumping 50% in 2021. U.S. crude is up about 7% in 2022 after jumping 55% last year.
Both benchmarks fell sharply in 2020 after the ‘Covid-19’ pandemic reduced demand for fuel.
Investors should remain cautious in light of rising interest rates and a potential recession.
