Oil prices fell almost 20% in 2025, their sharpest annual drop since 2020.
It marked the third consecutive year of losses for oil markets.
Analysts blame a heavily oversupplied market despite conflicts in key producing regions.
Global output continues to exceed demand by a wide margin.
International Energy Agency expects supply to beat demand by 3.8 million barrels a day.
Opec delayed planned production increases until later this year.
Brent crude ended 2025 near $61 a barrel, down from about $74 a year earlier.
US crude prices showed a similar decline.
Weaker economic growth and US-China trade tensions reduced global demand.
Banks forecast prices could fall into the mid-$50s next year.
Lower oil prices may ease fuel costs and inflation pressures.
However, UK households still face slightly higher energy bills after a cap rise by Ofgem.
