By Gina Lee

Investing.com: Oil prices fell on the final day of 2021, but are expected to make their biggest annual gains since 2012. Global economic recovery combined with producer restraint drove this, even though it has reached new highs all over the globe.

By 9:35 PM ET, the price had dropped to $78.58 (22:35 GMT) and was down 1.17% at $76.09.

Brent crude crude futures could end the year with a 53% gain, while U.S. crude will experience a 57% increase. This is the best performance of these benchmark contracts since 2009 when they saw prices rise more than 70%.

We’ve seen Omicron, Delta, and many other travel restrictions and lockdowns but the demand for oil remains relatively strong. Craig James, Chief Economist at CommSec said that this can be attributed to stimulus supporting demand as well as restrictions on supply.

After a price rise for many days, today’s decline in prices is a result of that increase. On new year’s day, COVID-19 rates rose to new levels in many countries, including Australia. This is due to Omicron coronavirus, which can be highly infectious.

U.S. experts advise Americans to be prepared for serious disruptions. Infection rates will likely increase due to increased holidays, New Year festivities, and school reopenings.

James anticipates that the Organization of the Petroleum Exporting Countries and Russia (OPEC+), will stick to its goal of adding 400,000 barrels of petroleum per day to the supply every month. They will continue to reverse sharply cut production in 2020 and meet again on Jan. 4.

James stated that he believes there will be a lot more pressure on OPEC+ in order to ensure sufficient oil is being delivered to the market.