Oil edges lower; set for 20% decline in 2020

Oil prices edged lower on Thursday, heading to record losses of about 20% for the year as the coronavirus pandemic and the accompanying global economic slowdown led to a decline in demand for crude.

Uncertainty continues to loom in the short-term, despite the start of vaccination process against COVID-19. Lockdown concerns remain as cases continue to rise in parts of the world, in addition to the new and more infectious strain of the virus.

The Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, is set to boost output by 500,000 barrels per day in January, as the group continues to monitor global oil demand.

In terms of trading, Brent crude fell 0.1% at $51.56 per barrel, at 9 am Makkah time.

The US West Texas Intermediate also declined 0.1% to $48.33 a barrel.