Oil market dynamics: Factors that will drive prices in 2026

January 11, 2026

Crude oil posted its sharpest annual decline since 2020 in 2025, with Brent down 19% and WTI falling 20% as prices slid to near multi-year lows. Persistent oversupply, where global production consistently outpaced demand and inventories swelled, outweighed brief price support from geopolitical tensions, keeping the market under pressure.

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