Oil prices are on track for their largest annual decline since 2020, with Brent crude futures down nearly 18% and WTI down 19%. This trend is attributed to oversupply concerns, with global supply outpacing demand despite geopolitical conflicts. Analysts predict Brent crude could dip to $55 a barrel in early 2026 before recovering, as U.S. shale producers' hedging strategies are expected to ensure consistent supply. OPEC has shifted focus from price defense to market share, increasing output throughout 2025.