Oil heads for biggest gain since 2016

Oil prices fell on Friday but were set to post their biggest annual gains since at least 2016, spurred by the global economic recovery from the Covid-19 slump and producer restraint, even as infections surged to record highs around the world.

Brent crude futures fell 93 cents, or 1.2 per cent, to $78.60 a barrel at 1413 GMT, while US West Texas Intermediate (WTI) crude futures dropped $1.05, or 1.4 per cent, to $75.94 a barrel.

Brent is on track to end the year up about 52 per cent, its biggest gain since 2016, while WTI is heading for a 57 per cent gain, the strongest performance for the benchmark contract since 2009, when prices soared more than 70 per cent.