Global oil prices fell almost 20% in 2025, marking their steepest annual decline since 2020.
It was also the first time prices fell for three consecutive years.
Analysts say the drop reflects a heavily oversupplied market.
Producers are pumping more crude than the global economy needs.
International Energy Agency expects supply to exceed demand by 3.8m 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 crude posted a similar fall.
Weak economic growth and reduced demand from China have added pressure.
Sanctions relief on Russia could further increase supply.
Banks including Goldman Sachs and JPMorgan Chase expect prices to fall into the $50s next year.
Lower oil prices may ease fuel costs and inflation.
However, Ofgem has still raised Britain’s energy price cap slightly this winter.
