Oil falls 20% in 2025, records its deepest loss in 5 years

Oil drilling rigs

Oil prices fell at the close of trading today, Dec. 31, posting their deepest annual loss since 2020, amid concerns about a global supply glut.

Brent crude futures for March delivery fell 0.78%, or 48 cents, to $60.85 a barrel, bringing their 2025 losses to 20.5%.

West Texas Intermediate (WTI) crude futures for February delivery fell 0.91%, or 53 cents, to $57.42 a barrel, marking a 20% annual decline.

On a monthly basis, the most actively traded Brent contract fell 2.45% in December, while its WTI counterpart declined 1.93%.

Oil's poor performance followed a volatile year, during which geopolitical tensions initially drove prices higher, only for crude to fall under the weight of concerns about a global supply glut fueled by record US production and the OPEC+ alliance's abandonment of voluntary production cuts.

Recent peace talks between Russia and Ukraine further exacerbated supply concerns, while the US naval blockade of Venezuela added to the market's uncertainty.