Oil prices fell almost 20% in 2025, marking the sharpest annual drop since 2020.
It was also the third consecutive year of losses for global oil markets.
Analysts blame a heavily oversupplied market, despite conflicts in major producing regions.
Crude supply is running far ahead of global demand.
The International Energy Agency expects supply to exceed demand by 3.8m barrels a day this year.
Opec has delayed production increases but output remains high.
Brent crude ended the year near $61 a barrel, down from about $74 a year earlier.
US oil prices posted similar declines.
Weaker global growth and trade tensions have reduced demand.
Banks including JPMorgan and Goldman Sachs expect prices to fall into the $50s in 2026.
Lower oil prices could ease inflation and fuel costs.
However, UK households face higher energy bills after a small rise in the cap set by Ofgem.
