Global oil prices recorded their steepest annual fall since 2020 after tumbling nearly 20% in 2025.
It marked the third consecutive year of losses for oil markets.
Analysts say prices fell despite geopolitical tensions because supply far exceeded demand.
International Energy Agency expects output to exceed demand by about 3.8m barrels a day.
Brent crude ended the year at about $61 a barrel, down from nearly $74 in 2024.
US oil prices followed a similar decline.
Oversupply has been driven by weak global growth and softer demand from China.
Potential easing of Russia-Ukraine sanctions could add further pressure.
Opec delayed production increases, but analysts expect excess supply to persist.
Banks including JPMorgan Chase and Goldman Sachs forecast prices may dip into the $50s.
Lower oil prices could ease fuel costs and inflation.
However, UK households still face higher energy bills after a cap rise announced by Ofgem.
