Oil caps strongest year since 2016 on Opec cuts, trade truce

Bloomberg

Oil in New York capped its biggest annual increase since 2016, as Opec’s production cuts tempered supplies while a trade pact between the US and China buoyed the outlook for demand.
West Texas Intermediate futures fell 1% yet climbed 34% this year as Opec and its allies cut production and a trade deal between Washington and Beijing neared. With hedge funds’ net-bullish bets at a seven-month high, even protesters storming the American embassy in Iraq, Opec’s second-biggest producer, couldn’t support prices on the final trading day of the year.
“The market is looking past Iraq developments at this stage, as it is unlikely that there will be an impact on supply in the near term,” says Bart Melek, head of global commodity strategy at TD Bank in Toronto.
Oil markets faced a tumultuous year, with much of WTI’s gains coming in its first few weeks. Prices saw their steepest one-day loss in four years on August 1 after Trump threatened to impose more tariffs on China.
In 2020, oil prices are likely to remain in check as Opec+ production cuts are offset by higher output from other countries and a mixed outlook for demand, analyst forecasts show. Nevertheless, prices are seen climbing in middle of year amid stronger emerging-market consumption.

then soared the most in more than a decade in September when key oil facilities in Saudi Arabia were disabled in a missile attack.
US benchmark climbed back above $60 in December after rocky second half
WTI for February delivery fell 62 cents to $61.06 a barrel on the New York Mercantile Exchange. Prices advanced by about $16 a barrel this year.
Brent for March settlement fell 67 cents to $66.00 a barrel on London’s ICE Futures Europe exchange. The commodity ended the year 23% higher, posting the biggest annual gain since 2016.