Oil prices were little changed on the final day of the year, but posted their first annual drop in three years as fears of a slowing global economy and emerging supply glut outweighed impending production cuts from OPEC nations.
Both oil benchmarks are down more than a third this quarter, the steepest decline since the fourth quarter of 2014. For the year, U.S. crude has lost almost 25 percent, while Brent is off by nearly 20 percent.
A tweet by U.S. President Donald Trump claiming progress on a possible U.S.-China trade deal pushed crude prices up more than 2 percent in early trading on Monday. But oil lost ground as traders focused to data showing sluggish Chinese manufacturing activity in December, analysts said.
"That's raising concerns about demand growth," said Phil Flynn, an oil markets analyst at Price Futures Group in Chicago. "Everybody is convinced the trade war is going to slow down global economic growth and demand for oil."