Oil prices traded modestly higher during Wednesday’s Asian session, even as Brent crude headed for its longest stretch of annual losses on record, in a year during which global supply consistently outpaced demand.
By 3:50 pm AEDT (4:50 am GMT), Brent crude futures for March were up 25 cents, or 0.4%, at US$61.58 per barrel. U.S. West Texas Intermediate crude also gained 24 cents, or 0.4%, to US$58.19 per barrel.
Despite the uptick, crude prices have suffered heavy losses throughout 2025, driven by persistent concerns over a supply surplus.
A key factor has been OPEC+’s decision to gradually unwind production cuts that had supported prices in previous years.
After restraining output through much of 2023 and 2024, the producer group eased voluntary curbs in 2025, adding supply to an already well-stocked market.
The increase in OPEC+ barrels, combined with resilient non-OPEC production and slower-than-expected global demand growth, weighed heavily on prices over the course of the year.
Investors are now turning their attention to an OPEC+ meeting scheduled for 4 January, to be held via video conference, where producers are expected to review market conditions and discuss output policy for early 2026.
