Oil in New York capped its biggest annual increase since 2016, as OPEC’s production cuts tempered supplies while a trade pact between the U.S. and China buoyed the outlook for demand. 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 attack heightened concerns of destabilization in Iraq, which pumps nearly 5 million barrels of oil each day, or roughly 5% of global supplies. “Any attempt by Iran to disrupt Iraq supply is not a factor at this time.”Oil markets have faced a tumultuous year, with much of WTI’s gains coming in its first few weeks. AdvertisementIn 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.

Source: Los Angeles Times December 31, 2019 23:15 UTC