WTI Crude Ends 2025 with Losses on Oversupply Outlook

Supply Glut Concerns

The EIA and other agencies forecast a global surplus of nearly 1 million barrels per day in 2026. This structural oversupply is the primary headwind for prices, limiting the effectiveness of OPEC+ cuts.

Geopolitical Wildcards

While the fundamental trend is bearish, traders remain cautious of potential disruptions in Iran or Venezuela. Any significant outage could temporarily spike prices, but the ample spare capacity globally limits the long-term upside.