Crude Futures Nudge Lower, On Track For Largest Annual Gain Since ‘09

WTI & Brent crude futures sit ~$0.35 below their respective settlement levels, pulled lower by a downtick in U.S. e-minis in a low liquidity, limited Asia-Pac session. Note that WTI is on course to register a ~$28 gain for calendar ’21, which would be the largest annual gain recorded since ’09, while Brent is on course to add ~$27 over the same period (note that these are rounded figures based on prevailing market levels). A reminder that ’21’s gains were fuelled by the COVID vaccination rollout and subsequent reopening drives, which have supported demand, alongside the well-documented inflationary impulse. OPEC+ has carefully managed the incremental release of additional supply to the market, which has also aided the rally. The group is set to meet next week.