Brent crude heads for 8 gain in 2022
Year marked by Ukraine war supply concerns, Chinese demand drop
Heading into 2023, China39;s COVID spike hurts demand outlook

LONDON, Dec 30 Reuters Oil rose on Friday and was on track for a second straight annual gain in a volatile year marked by tight supplies because of the Ukraine war and weakening demand from the world39;s top crude importer, China.

Crude surged in March with global benchmark Brent reaching 139.13 a barrel, the highest since 2008, after Russia39;s invasion of Ukraine sparked supply concerns. Prices cooled rapidly in 202239;s second half on worries about global recession.

This has been an extraordinary year for commodity markets, with supply risks leading to increased volatility and elevated prices, said ING analyst Ewa Manthey.

Next year is set to be another year of uncertainty, with plenty of volatility.

On Friday, Brent crude was up 32 cents, or 0.4, to 83.78 a barrel by 0915 GMT. U.S. West Texas Intermediate crude added 31 cents, or 0.4, to 78.71.

For the year, Brent looked set to gain 8, after jumping 50 in 2021. U.S. crude is on track to rise 4.6 in 2022, following last year39;s gain of 55. Both benchmarks fell in 2020 as the pandemic hit demand.

Investors are going into 2023 with a cautious mindset, prepared for more rate hikes, and expecting recessions around the globe, said Craig Erlam, analyst at brokerage OANDA.

Volatility is likely going nowhere fast as we navigate another highly uncertain…