Oil prices concluded the year with a notable decline, registering substantial annual losses amidst growing concerns of a global supply glut.
West Texas Intermediate (WTI) crude experienced a yearly drop of approximately 20%, reflecting the overall bearish sentiment in the market.
On the final trading day of 2025, Brent crude settled at $60.85 per barrel, a decrease of 48 cents or 0.8%. Similarly, West Texas Intermediate (WTI) crude fell by 53 cents, or 0.9%, to close at $57.42 per barrel.
Analysts attribute the price weakness to increasing production levels in various regions coupled with anxieties surrounding global economic growth. The potential for weaker demand has further weighed on market sentiment.
The significant losses underscore the challenges facing oil-producing nations as they navigate a complex landscape of supply and demand dynamics. The Organization of the Petroleum Exporting Countries (OPEC) and its allies will likely face increased pressure to consider further production adjustments in the coming months to stabilize prices.
The performance of the oil market remains a critical indicator for the global economy, and these recent declines warrant close monitoring by investors and policymakers alike.
