UPDATE 6-Oil edges higher, but posts 20% annual drop in tumultuous 2020

* Oil edges higher on last trading day
* Brent falls 21.5% for year; WTI drops 20.5%
* Brent, WTI more than doubled from decade-lows in April

(Updates with settlement prices, market activity)
By Stephanie Kelly
NEW YORK, Dec 31 (Reuters) - Global crude prices edged
higher on Thursday but lost more than a fifth of their value in
2020, as lockdowns to combat the novel coronavirus depressed
economic activity and sent oil markets reeling.
Still, Brent and U.S. crude benchmarks have more than
doubled from April's nadir as producers cut output to match
weaker demand. News of coronavirus vaccine distributions also
bolstered prices in the fourth quarter, helping futures recover
to the highest in about 10 months.
On the last trading day of 2020, Brent LCOc1 rose 17 cents
to settle at $51.80 a barrel. U.S. West Texas Intermediate rose
12 cents to settle at $48.52 a barrel. Brent fell 21.5% for the
year, with WTI falling 20.5%.
Prices for 2020 bottomed in April as fuel demand collapsed
due to the COVID-19 pandemic and after a price war between oil
giants Saudi Arabia and Russia. WTI plummeted to a record low
negative-$40.32 per barrel, while Brent fell to $15.98 barrel,
the lowest since 1999. From there prices drifted higher and took off once vaccine
optimism hit the market.
"The first half was remarkable and unprecedented with a
steep move lower and a snapback rally," said John Kilduff, a
partner at Again Capital Management in New York. "Then it was
like watching paint dry for several months through October."
Though prices have climbed the last two months, additional
lockdowns have weighed again on fuel demand and a new, highly
infectious variant of the virus has raised alarms. A monthly Reuters poll on Thursday showed oil prices are not
expected to make much progress in 2021. And the demand outlook for fuel still remains murky. U.S.
gasoline futures RBc1 fell 17% for the year, while U.S.
heating oil futures HOc1 dropped 27%.
Some commodity markets, including spot Asian LNG LNG-AS
and silver SIc1 , were ending 2020 on a strong note, with
recovering demand and widespread stimulus packages buoying
prices. Rollouts of vaccines to combat the virus and trillions
of dollars' worth of fiscal support were expected to boost
investment and spending in 2021. U.S. natural gas futures NGc1 posted their biggest yearly
gain since 2016, helped by record liquefied natural gas (LNG)
exports. U.S. stock indexes were set to end 2020 with solid
gains. MKTS/GLOB
The next major oil price driver will come Monday as the
Organization of the Petroleum Exporting Countries and allies
including Russia, a group known as OPEC+, plan to debate
boosting crude output from February.