Global oil prices fell nearly 20% in 2025, marking their steepest annual decline since 2020.
It was also the third consecutive year of losses for the oil market.
Analysts blame a heavily oversupplied market, despite conflicts in major energy regions.
Crude supply is far outpacing global demand.
International Energy Agency expects supply to exceed demand by about 3.8 million barrels a day this year.
OPEC has delayed production increases, but output remains high.
Brent crude ended the year near $61 a barrel, down from almost $74 a year earlier.
US crude posted a similar decline, falling to about $57 a barrel.
Weak economic growth and trade tensions, especially between the US and China, have reduced demand.
Banks including JPMorgan and Goldman Sachs expect prices to dip into the $50s in 2026.
Lower oil prices could ease fuel costs and inflation pressures.
However, UK households still face higher energy bills after a small cap rise from Ofgem.
