Global oil prices have recorded their steepest annual decline since the Covid pandemic.
Prices fell nearly 20% in 2025, the biggest drop since 2020.
It marks the first time oil has fallen for three consecutive years.
Analysts blame a heavily oversupplied global market.
Crude slipped below $60 a barrel for the first time in almost five years.
Hopes of a Russia-Ukraine peace deal added to supply expectations.
The International Energy Agency forecasts supply exceeding demand by 3.8 million barrels a day.
Opec has delayed production increases, but output remains high.
Brent crude ended the year at $60.85, down from nearly $74 in 2024.
US crude posted a similar fall.
Weak 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 fuel costs and inflation pressures.
However, UK households still face higher energy bills after a cap rise by Ofgem.
