Brent crude futures, down over 17% the most substantial annual percentage decline since 2020, are on track for a third straight year of losses, their longest losing streak to date. United States (US) West Texas Intermediate (WTI) crude headed for a near 19% annual decline.
BNP Paribas commodities analyst Jason Ying anticipates Brent will dip to $55 a barrel in the first quarter before recovering to $60 a barrel for the rest of 2026 as supply growth normalises and demand stays flat.
“The reason why we’re more bearish than the market in the near term is that we think that US shale producers were able to hedge at high levels,” he said.
“So the supply from shale producers will be more consistent and insensitive to price movements.”
Brent futures were up 0.46%, at $61.61 a barrel by 16h17 CAT, while WTI crude was at $58.23 or 0.48%. The 2025 average prices for both benchmarks are the lowest since 2020, London Stock Exchange Group data showed.
–Reuters–
