The prices of the two major crude oil grades depreciated on Wednesday, the final trading session of 2025, as expectations of oversupply increased in a year marked by wars, higher tariffs, increased output by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) and sanctions on Russia, Iran and Venezuela.
Brent futures settled at $60.85 a barrel after it went down by 48 cents or 0.8 per cent and the US West Texas Intermediate (WTI) crude fell by 53 cents or 0.9 per cent to $57.42 a barrel.
Brent crude futures shed about 19 per cent in 2025 while the US crude benchmark logged an annual decline of almost 20 per cent.
Market analysts noted that prices will remain down before recovering to $60 a barrel for the rest of 2026 as supply growth normalises and demand stays flat.
It is expected that the supply from shale producers will be more consistent and insensitive to price movements in the new year.
Already, oil production in the US hit a record in October, according to the latest data from the US Energy Information Administration (EIA).
Crude inventories fell by 1.9 million barrels to 422.9 million barrels in the week ended December 26, the EIA said. US gasoline (petrol) stocks rose by 5.8 million barrels in the week to 234.3 million barrels while distillate stockpiles, including diesel and heating oil, rose by 5 million barrels to 123.7 million barrels.
In recent weeks, OPEC’s biggest producers, Saudi Arabia and the United Arab Emirates, have become locked in a crisis over Yemen. However, the latest public spat between the two OPEC players over Yemen created just a temporary blip in crude prices.
In the end, the UAE said it would pull out its remaining forces out of Yemen.
The market was also watching US President Donald Trump ordering a blockade on Venezuelan oil exports and his threat of another strike on Iran.
OPEC+ is due to meet on January 4 to look at the next decision after the alliance paused oil output hikes for the first quarter of 2026 after releasing some 2.9 million barrels per day into the market since April.