Brent crude is heading into the new year under sustained pressure, with prices at risk of slipping below $60 per barrel after posting their steepest annual decline since 2020
The weak performance is expected to extend into 2026, as supply growth continues to outpace demand. This is set to heighten fiscal pressure on oil-dependent Gulf producers and sharpen scrutiny of Opec+’s strategy of restoring output to regain market share, even as global consumption continues to expand.
Analysts say the oil market is entering a period of structural imbalance, with production expected to grow at roughly three times the pace of demand despite steady consumption gains.
“The oil market is heading into 2026 with an interesting contradiction, as demand continues to grow at a healthy pace while supply expands nearly three times faster,” said Ahmad Assiri, research strategist at Austra
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