Due to the conflict in the Ukraine, limited supply, a high dollar, and weaker demand from China, oil had a turbulent year. Oil prices increased and were expected to record their second consecutive annual rise.
Around $78.00 a barrel was the going rate for U.S. West Intermediate crude. Following a 55% increase the previous year, it is expected to rise 4.5% in 2022.
With Russia’s invasion of Ukraine, the U.S. Oil benchmark rose to a 14-year high of $130 a barrel in March. Prices spiked to a peak of $139.13 per barrel in March, the highest level since 2008.
A rise of COVID cases in the nation and worries about a worldwide recession are clouding the outlook for commodities consumption, even if China is anticipated to make a modest recovery in 2023.