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 say the decline reflects a heavily oversupplied market.
Producers continue pumping more crude than the global economy needs.
Brent crude ended the year near $61 a barrel, down from about $74 in 2024.
US oil prices fell similarly, closing near $57 a barrel.
The International Energy Agency expects supply to exceed demand by 3.8 million barrels a day.
Opec has delayed production increases but oversupply remains.
Weaker global growth and US-China trade tensions have reduced demand.
Banks including Goldman Sachs and JPMorgan Chase expect prices to fall into the $50s in 2026.
Lower oil prices may ease fuel costs and inflation.
However, UK households still face higher energy bills after Ofgem raised the price cap slightly for early 2026.
