Global oil prices under pressure: What’s driving the decline and what lies ahead

Global oil markets have entered a bearish phase, with benchmark U.S. NYMEX crude sliding below $60 per barrel last week. Prices have fallen more than 20% from January highs of $74, erasing gains from the summer rally. This sharp downturn reflects a confluence of supply-side strength and demand-side weakness, reshaping the outlook for the rest of 2025 and beyond.

Oil’s slide below $60 underscores a market dominated by supply resilience and tepid demand. With U.S. output at record highs, OPEC+ reluctant to cut aggressively, and China’s consumption shifting toward petrochemicals, fundamentals point to prolonged softness.