Oil prices ended 2018 on a high, rising more than 2% on the final day of 2018 and mirroring the gains in the stock market. But analysts expect the rise to be just temporary, amidst lingering concerns over a demand-supply imbalance.
Driven by healthy demand and a suitable equilibrium, oil prices rose consistently from January to October 2018. With concerns surrounding the impending sanctions, analysts expected the prices to rise further but just the opposite happened. After reaching a four-year high of $86.74 per barrel in early October, oil prices dropped continuously.
After dropping nearly 25% in 2018, U.S. West Texas Intermediate crude futures ended the year at $45.55 a barrel. Dropping at a similar pace -- a 20% decline in 2018 -- Brent crude futures ended the year at $53.74 a barrel.