Oil prices edged down on Friday but were set to post their biggest annual gains in 12 years, spurred by the global economic recovery from the Covid-19 slump and producer restraint, even as infections surged to record highs around the world.

Brent crude futures fell to $79.14 a barrel, while US West Texas Intermediate (WTI) crude futures dropped to $76.55 a barrel.

Brent is on track to end the year up 53 per cent, while WTI is heading for a 58 per cent gain, the strongest performance for the two benchmark contracts since 2009, when prices soared more than 70 per cent.