Global oil prices recorded their sharpest annual fall since the Covid pandemic.
Prices dropped nearly 20% in 2025, the biggest decline since 2020.
This marked the third consecutive year of annual losses for oil markets.
Analysts say persistent oversupply has outweighed geopolitical tensions.
Brent crude ended the year at about $60.85 a barrel, down from nearly $74 in 2024.
US crude prices fell similarly, closing around $57.
The International Energy Agency expects supply to exceed demand by 3.8m barrels per day.
Members of Opec have delayed production increases, but output remains high.
Weaker global growth and reduced Chinese demand have dampened consumption.
Sanctions relief on Russia could add further supply to the market.
Banks including BNP Paribas and Goldman Sachs expect prices to fall into the $50s.
Lower oil prices may ease fuel costs and inflation pressures for households.
