Oil prices plummeted on Friday, but should see their biggest annual gains in 12 years, spurred on by the global economic recovery from the COVID-19 slump and producer reluctance even as infections hit record highs around the world.

Brent crude oil futures fell 3 cents 718 GMT to $ 79.50 a barrel, while U.S. crude oil futures West Texas Intermediate (WTI) fell 10 cents, or 0.1%, to $ 76.89 a barrel.

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Brent is well on its way to end the year up 53%, while WTI is targeting a 57% gain, the strongest performance of the two benchmark contracts since 2009 when prices rose more than 70%. Both contracts peaked in October 2021, with Brent hitting its highest level since 2018 at $ 86.70 a barrel and WTI hitting its highest level since 2014 at $ 85.41 a barrel.

Global oil prices are expected to continue to rise over the next year as the demand for jet fuel catches up.

“We’ve had Delta and Omicron and all kinds of lockdowns and travel restrictions, but the demand for oil has remained relatively firm. You can attribute this to the effects of the stimulants in support of demand and supply restrictions,” said Australian brokerage firm CommSec Craig, chief economist James.

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However, after oil prices rose for several days in a row, oil prices stalled on Friday as COVID-19 cases around the world, from Australia to the United States, hit new pandemic highs, fueled by the highly transmissible Omicron -Coronavirus variant.

U.S. health experts warned Americans to prepare for severe disruption in the coming weeks as infection rates are likely to worsen due to increased vacation travel, New Year celebrations, and school openings after the winter breaks.

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With oil hovering around $ 80, the Organization of Petroleum Exporting Countries, Russia and allies, collectively called OPEC +, will likely stick to their plan to add 400,000 barrels per delivery day in February when they meet on Jan. 4, four sources said: as they continue to reduce the sharp production cuts made in 2020.

“I think we’re going to see a lot of pressure on OPEC + to make sure enough oil gets into the market,” said James.

(Reporting by Sonali Paul and Florence Tan; Editing by Sam Holmes)