Oil on Track for Largest Yearly Decline in 5 Years

2025-12-31 01:33 By Judith Sib-at 1 min. read

WTI crude oil futures fell to $57.7 per barrel on the final day of 2025, heading for the steepest annual decline since 2020 on concerns over a supply glut.

Investors are now monitoring an upcoming OPEC+ meeting, geopolitical developments, and a US inventory report.

OPEC+ is expected to maintain its plan to pause supply increases in Q1 2026 when it meets on Sunday.

Geopolitical factors continue to support prices, including US blockade of Venezuelan oil shipments, fresh instability in the Middle East, and lingering uncertainty over a Russia–Ukraine peace deal.

Meanwhile, the API estimated that US crude inventories rose by 1.7 million barrels last week, the largest build since mid-November if confirmed later today.

WTI is down over 1% so far in December, on track for a fifth monthly loss, and has fallen nearly 20% for the year.

The prospect of a large surplus amid higher output from OPEC+ and non-OPEC producers, alongside subdued demand growth, gradually pushed prices lower in 2025.



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