Oil prices slide sharply in 2025 — Reuters
Illustrative photo: Brent and WTI brands fell to their lowest levels since 2020 (Getty Images)
In December, Brent crude oil prices remained virtually unchanged. However, overall prices will fall by 18% in 20225, which will be the largest decline since 2020. Prices are falling due to geopolitical risks, oversupply, and trade wars, according to Reuters.
Since the beginning of the year, Brent crude oil futures have fallen by 18%. For the third year in a row, Brent is ending with a decline, which is the longest series of losses for the brand in history. The brand is expected to fall to $55 per barrel in the first quarter of 2026 (from the current price of $61 per barrel) and then return to $60 during the year.
"The reason why we're more bearish than the market in the near term is that we think that U.S. shale producers were able to hedge at high levels. So the supply from shale producers will be more consistent and insensitive to price movements," says Jason Ying, commodity market analyst at BNP Paribas.
At the same time, WTI is trading at almost $58 per barrel, and the annual decline for US oil was 19%. Overall, both oil brands have fallen the most since 2020.
On December 29, oil prices rose slightly due to tensions in the Middle East and difficulties in peace talks between Russia and Ukraine. The growth began on December 24 amid threats of supply disruptions from Venezuela.
According to analysts, the recovery in oil prices is linked to geopolitical tensions, in particular, US President Donald Trump's announcement of a complete and final blockade of sanctioned Venezuelan oil tankers. On December 16, US President Donald Trump announced a complete blockade of sanctioned oil tankers entering or leaving Venezuelan waters.
