Global oil prices recorded their steepest annual fall since the Covid pandemic.
Crude prices dropped nearly 20% in 2025, marking the biggest loss since 2020.
Analysts blame an oversupplied market despite conflicts in key producing regions.
The International Energy Agency expects supply to exceed demand by 3.8m barrels a day.
Brent crude ended the year near $61 a barrel, down from almost $74 in 2024.
US crude prices fell similarly, settling close to $57 a barrel.
Opec delayed output increases, but production remains high.
Weak global growth and reduced Chinese demand added pressure.
Banks including BNP Paribas and Goldman Sachs warn prices could fall into the $50s next year.
Lower oil prices may ease fuel costs, but UK households still face higher bills.
Ofgem raised the energy price cap slightly for early 2026.
