Global oil prices fell nearly 20% in 2025, the sharpest annual drop since 2020.
It marked the third consecutive year of losses for the oil market.
Analysts blame persistent oversupply despite conflicts in major energy regions.
Crude production continues to exceed global demand by a wide margin.
International Energy Agency estimates supply will beat demand by 3.8 million barrels a day this year.
Opec has delayed output increases, but excess supply remains.
Brent crude ended the year near $61 a barrel, down from about $74 a year earlier.
US oil prices recorded a similar decline.
Weak economic growth and trade tensions have reduced demand, especially from China.
Banks including JPMorgan and Goldman Sachs expect prices to fall into the $50s in 2026.
Lower oil prices may ease fuel costs and inflation pressures.
However, UK households still face higher energy bills after Ofgem raised its price cap slightly for early 2026.
