Global oil prices fell nearly 20% in 2025, the steepest annual decline since 2020.
It marked the third consecutive year of losses for the oil market.
Analysts blame a heavily oversupplied market despite conflicts in key producing regions.
Crude briefly fell below $60 a barrel for the first time in almost five years.
The International Energy Agency expects supply to exceed demand by 3.8m barrels a day.
Opec has delayed planned output increases, but production remains high.
Brent crude ended the year near $61 a barrel, down from about $74 a year earlier.
US oil prices recorded a similar annual fall.
Weak global growth and US–China trade tensions have dampened demand.
Banks including Goldman Sachs and JPMorgan Chase expect prices to slip further in 2026.
Lower oil prices could ease fuel costs and inflation pressures.
However, UK households still face rising energy bills after a small cap increase by Ofgem.
