Key Facts
• On December 31, 2025, crude oil futures closed slightly lower.
• Brent crude settled at $60.85 per barrel, down 0.8%.
• WTI crude fell 0.9% to $57.42 per barrel.
• Both Brent and WTI futures declined about 20% over 2025.
• Brent’s 19% annual drop is the largest since 2020 and marks a third consecutive yearly decline.
• Oversupply concerns stem from multiple wars, tariff hikes, and increased output by OPEC Plus.
• Sanctions on Russia, Iran, and Venezuela contribute to supply surplus worries.
Summary
Crude oil futures ended 2025 with a roughly 20% decline, pressured by fears of oversupply. The market faced headwinds from geopolitical conflicts, tariff increases, and expanded production by the Organization of the Petroleum Exporting Countries (OPEC) and allied non-member producers known as OPEC Plus. Additionally, sanctions targeting Russia, Iran, and Venezuela have complicated supply dynamics, intensifying concerns about excess crude availability. Brent crude experienced its largest annual drop since 2020, continuing a three-year downward trend. West Texas Intermediate (WTI) futures mirrored this decline, reflecting broad market weakness. These factors combined to weigh heavily on oil prices throughout the year.
