Oil fell significantly in 2025: reasons for the decline
31 December 15:19
In December, Brent crude oil prices remained almost unchanged. But overall, prices will fall by 18% in 20225, which will be the biggest drop since 2020. Prices are falling due to geopolitical risks, oversupply, and customs wars.
According to "Komersant Ukrainian", this was reported by Reuters.
Since the beginning of the year, Brent crude oil futures have fallen by 18%. For the third year in a row, Brent has ended the year with a drop, which has become the longest streak of losses in history. It is expected to drop to $55 per barrel in the first quarter of 2026 (at the current price of $61 per barrel) and then return to $60 within a year.
“The reason why we are more bearish than the market in the short term is that we believe that US shale producers have managed to hedge at high levels… Therefore, the supply from the shale sector will be more stable and less sensitive to price fluctuations,” said Jason Yin, commodity markets analyst at BNP Paribas.
At the same time, WTI is trading at almost $58 per barrel, and the annual drop for US crude was 19%. Overall, both oil brands have fallen the most since 2020.
