Oil outlook: Markets head into another uncertain year with multiple variable factors

Oil outlook: Markets head into another uncertain year with multiple variable factors

Oil markets closed the week on a strong note, with Friday's gains eclipsing the weakness of the rest of the week, which was truncated by holidays.

Prices were down in the middle of the week but bounced back on Friday to close the week and the year higher. While the spurt in COVID-19 cases in China post the relaxation of curbs spooked the market, support came in the form of increased fighting in Ukraine.

The Dubai Brent EFS spread was seen climbing last week on support from the Brent benchmark, which rose sharply on Friday. Dubai benchmark was largely tepid on account of the situation in China and low end of year trades. The time spreads in Dubai swaps were largely flat through the week.

Weekly crude oil exports from the Middle East and North Africa were lower, at 106.9 million bbl and 8.1 million bbl, respectively.