Global oil prices fell almost 20% in 2025, marking their biggest annual drop since 2020.
It was also the third consecutive year of losses for the oil market.
Analysts say the decline reflects an oversupplied market despite conflicts in key regions.
Crude supply is running far ahead of global demand.
International Energy Agency expects supply to exceed demand by about 3.8 million barrels a day this year.
Even Opec has delayed planned production increases.
Brent crude ended the year near $61 a barrel, down from about $74 a year earlier.
US oil prices showed a similar decline.
Weaker economic growth and reduced demand from China have added pressure.
Analysts at major banks warn prices could fall into the mid-$50s in 2026.
Lower oil prices may ease fuel costs and inflation.
However, UK households face slightly higher energy bills after a cap increase by Ofgem.
