Oil prices recorded their steepest annual fall since the Covid pandemic in 2025.
Crude prices dropped almost 20%, marking the biggest yearly loss since 2020.
It was also the first time oil prices fell for three consecutive years.
Analysts blame a heavily oversupplied global market.
Brent crude ended the year near $61 a barrel, down from about $74 in 2024.
US crude fell to roughly $57 a barrel over the same period.
The International Energy Agency expects supply to exceed demand by 3.8 million barrels a day.
Even Opec production limits have failed to stabilise prices.
Weaker economic growth and reduced Chinese demand have further hit consumption.
Possible easing of sanctions on Russia could add more oil to the market.
Banks including BNP Paribas and Goldman Sachs expect prices to fall into the $50s.
Lower oil prices may ease inflation and fuel costs for consumers.
However, UK households still face higher energy bills.
Ofgem raised the price cap slightly from January.
