Oil set to end turbulent 2022 higher

Oil prices traded higher on Friday and were on track to post their second straight annual gains. Oil had a stormy year marked by tight supplies due to the Ukraine war, a strong dollar and weakening demand from China. U.S. West Intermediate crude traded around $78.00 a barrel. It is on track to rise 4.5% in 2022, following a 55% gain last year. The US oil benchmark reached a 14-year high of $130 per barrel in March as Russia invaded Ukraine. The jump in oil prices translated into pain at the pump as the price for a gallon of regular gasoline hit an all-time high of $5.016 on June 14. Brent crude futures traded around $82.00 a barrel. Brent looked set to end the year with a 7.6% gain, after jumping 50.2% in 2021. Prices surged in March to a peak of $139.13 a barrel, a level not seen since 2008. Oil prices cooled as central banks across the world hiked interest rates to fight inflation, boosting the U.S. dollar. That made dollar-denominated commodities a more costly investment for holders of other currencies. Also, China’s zero-COVID restrictions, which were only eased in December, squashed oil demand recovery hopes for the world’s No. 2 consumer. While China is expected to slowly recover in 2023, a surge in COVID cases in the country and global recession concerns are clouding the commodities demand outlook.