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Oil set for 20% drop in 2020 as lockdowns weigh, market eyes more stimulus

31 December 2020 08:26 (UTC +04:00)

Global crude oil markets have lost about a fifth of their value in 2020 as strict coronavirus lockdowns paralysed much of the global economy, but prices have rebounded strongly from their lows as governments rolled out stimulus, APA reports quoting Reuters.

On Thursday, the last trading day of 2020, Brent was trading down 25 cents, or 0.5%, at $51.38 a barrel, as of 0246 GMT and U.S. West Texas Intermediate (WTI) lost 0.2%, or 11 cents, to $48.29 a barrel.

“It is kind of year-end quiet but a weaker dollar is helping keep a floor under markets,” said Stephen Innes, chief global market strategist at Axi.

Brent and WTI have more than doubled from decade-lows seen in April, putting past a year which marked the first negative prices for WTI that shocked investors globally.