Brent and US West Texas Intermediate (WTI) crude oil futures had closed out the last trading session of 2020 in a fairly upbeat texture, however, both contracts had curbed out more than a fifth of their valuation last year as a global-scale public health concern at large alongside a price war waged over market share earlier in the year amid a potential supply glut had been sending forth shockwaves into the oil markets throughout the year.
On top of that, as pandemic-led restrictions had been stiffened up in the US and EU and depressed economic activities in a majority of G20 economies, global oil markets had been facing off a sharp downturn in context of a brutal drawdown in hopes of a near-term recovery of crude oil demands.
Apart from that, in the early days of an ongoing Pandemic outbreak, the OPEC-kingpin Saudi had waged a price war over market shares that in effect had led to a ludicrous supply glut and gobbled down the US crude prices into a negative territory for the first time on record, while US WTI pommelled to an all-time low of negative -$40.32 per barrel and Brent crude futures were bottomed to $15.98 a barrel, its lowest in more than two decades.
Nonetheless, despite pandemic-propelled trepidations and trickles, both US and UK crude oil contracts’ prices had more than doubled from a steep plunge in April, while trillion-dollar stimulus packages from both US Federal Reserve and ECB (European Central Bank) had led to an earlier-than-anticipated recovery in crude oil futures’ prices.
Crude oil ends higher, but clocks 20% in yearly percentage decline
Citing statistics, in the last trading session of 2020, UK crude rose by 0.2 per cent to $51.80 a barrel, while US WTI crude futures’ prices added 0.2 per cent to $48.52 per barrel.
On the year, UK crude plummeted as much as 21.5 per cent, while US WTI had shrugged off 20.5 per cent. Meanwhile, addressing to a tumultuous 2020 for global crude oil market, a partner at Again Capital Management in New York, John Kilduff, said later this week, “The first half was remarkable and unprecedented with a steep move lower and a snapback rally. Then it was like watching paint dry for several months through October. ”