Crude oil recorded its largest annual decline since 2020, as the market grapples with widespread geopolitical risks alongside persistently rising global supply. Copper prices achieved their biggest annual increase since 2009. Gold and silver fell on the final trading day of 2025, yet both were still poised to register their most significant annual gains in over four decades.
Crude oil prices registered their largest yearly drop since 2020, pressured by supply concerns and other factors. Expectations of a severe supply glut continuing into 2026 are projected to further weigh on oil prices.
West Texas Intermediate (WTI) crude declined by 0.9%, settling at $57.42 per barrel, culminating in an annual loss of 20%.
Brent crude for March delivery settled 0.8% lower on Wednesday at $60.85 per barrel.
In the near term, traders are focused on the upcoming OPEC+ meeting and policies from the Trump administration targeting major oil-producing nations Russia, Iran, and Venezuela.
However, the long-term narrative remains consistent: a persistent crude oil supply surplus. Both the International Energy Agency (IEA) and the U.S. government forecast that 2025 crude production will exceed consumption by just over 2 million barrels per day, with this surplus expected to worsen in the following year.
"Amid robust output from non-OPEC nations like the U.S., Brazil, Guyana, and Argentina, coupled with uneven global demand growth, the crude market is anticipated to remain oversupplied through 2026," said Kaynat Chainwala, an analyst at Kotak Securities. "Oil prices may fluctuate within a $50 to $70 range, while uncertainties surrounding supply from Venezuela or Russia will continue to provide price support."
Copper prices notched their largest annual gain since 2009, driven by investor bets that this metal, crucial for electrification, will face a supply deficit, with recent tightness also providing a boost.
Copper concluded the year on a powerful surge, repeatedly hitting new highs; it climbed 42% year-to-date on the London Metal Exchange (LME), outperforming the other five major industrial metals on the exchange.
At the close, LME copper fell 1.08% to $12,423.0 per metric ton; LME aluminum rose 0.52% to $2,995.5 per metric ton; LME nickel declined 1.08% to $16,646.0 per metric ton; LME zinc dipped 0.21% to $3,117.5 per metric ton.
Gold and silver prices both retreated on the final trading day of 2025, yet they were still set to cap an outstanding year for precious metals with their largest annual advances in over four decades.
Spot gold hovered around $4,320 per ounce, while silver also slid toward $71 per ounce. Both precious metals experienced sharp volatility during thin post-Christmas trading, plunging on Monday, recovering on Tuesday, and falling again on Wednesday. The intense market swings prompted CME Group to announce increased margin requirements for precious metal futures.
Both metals are heading for their best annual performance since 1979, fueled by robust demand for safe-haven assets against a backdrop of heightened geopolitical risks and interest rate cuts by the Federal Reserve. The so-called "devaluation trade," triggered by concerns over inflation and the ballooning debt burdens of developed economies, has further accelerated this fiery rally.
As of 4:44 PM New York time, spot silver was down 6.34% at $71.4561 per ounce; Spot gold was down 0.57% at $4,314.88 per ounce.
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