Oil prices log steepest annual drop since 2020

Oil prices fell on Wednesday and recorded an annual loss of nearly 20%, as expectations of oversupply increased in a year marked by wars, higher tariffs, increased Organization of the Petroleum Exporting Countries and allies (OPEC+) output and sanctions on Russia, Iran and Venezuela.

- 

Brent crude futures shed about 19% in 2025, the most substantial annual percentage decline since 2020 and its third straight year of losses, the longest such streak on record. US West Texas Intermediate (WTI) crude logged an annual decline of almost 20%.

On the last day of the year, Brent futures settled at $60.85 a barrel, down 48 cents, or 0.8%. US WTI crude fell by 53 cents, or 0.9%, to settle at $57.42 a barrel.

BNP Paribas commodities analyst Jason Ying anticipates Brent will dip to $55 a barrel in the first quarter before recovering to $60 a barrel for the rest of 2026 as supply growth normalizes and demand stays flat.

“The reason why we're more bearish than the market in the near term is that we think that US shale producers were able to hedge at high levels,” he said.