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Global oil markets are closing out 2025 with their steepest annual decline since the pandemic, as swelling supplies overwhelm a year dominated by wars, sanctions and geopolitical shocks, Reuters writes.
Brent crude is down more than 17% for the year and is on track for its third straight annual loss, while U.S. benchmark WTI is off nearly 19%, pushing average prices to their lowest levels since 2020.
Despite flare-ups ranging from Ukraine-related supply disruptions to Middle East shipping threats and new U.S. sanctions on Venezuela, prices eased after OPEC+ accelerated production, releasing nearly 3 million barrels a day since April. Analysts now widely expect supply to exceed demand in 2026, with forecasts of a glut as high as 3.8 million barrels per day. Some banks see Brent dipping into the mid-$50s early next year before stabilizing, as U.S. shale output remains resilient and largely insulated from price swings through aggressive hedging.
