Global oil prices have recorded their sharpest annual decline since 2020.
Crude prices fell by almost 20% in 2025, marking three consecutive yearly losses.
Analysts blame a heavily oversupplied market, despite conflicts in key producing regions.
International Energy Agency expects supply to exceed demand by 3.8m barrels a day this year.
Brent crude ended 2025 at $60.85 a barrel, down from nearly $74 a year earlier.
US crude also dropped about 20%, closing near $57 a barrel.
Weak global growth and reduced Chinese demand have weighed on prices.
Moves toward a Russia-Ukraine peace deal raised fears of additional supply.
Opec has delayed production increases but output remains high.
Banks including JPMorgan and Goldman Sachs expect prices to fall into the $50s in 2026.
Lower oil prices could ease fuel costs and inflation pressures.
However, UK households still face rising energy bills after a cap increase by Ofgem.
