Oil prices are on track for their largest annual decline since 2020, with Brent crude futures down nearly 18% and WTI down around 19%. This trend is attributed to oversupply fears, increased OPEC output, and geopolitical factors including sanctions on Russia, Iran, and Venezuela, alongside conflicts in Ukraine and the Middle East. Analysts predict Brent could fall to $55 a barrel in early 2025 before recovering, citing consistent U.S. shale production as a contributing factor to sustained supply.