The price of crude oil fell to an annual average of $69 per barrel in 2025, according to the U.S. Energy Information Administration. It was the lowest since 2020. EIA said supplies in the global crude oil market exceeded demand, but crude oil inventory builds in China muted some of the decline. Events such as Israel’s June 13 strikes on Iran and attacks between Russia and Ukraine targeting oil infrastructure periodically supported prices.
On a monthly average, the price of Brent crude oil declined from a high of $79 per barrel in January to a low of $63 per barrel in December – the lowest monthly average since early 2021.
EIA said in the first half of 2025, crude oil prices declined in response to slowing economic activity. And in second half of the year, OPEC+ announcements that increased crude oil production targets for the group increased the prospect of an oversupplied market. EIA said global production of crude oil and liquid fuels outpaced consumption throughout 2025.
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