Crude Oil Prices Down In 2025 Due To Oversupply - CleanTechnica

The U.S. Energy Information Administration (EIA) projects that crude oil prices will decline throughout 2025 due to a persistent global oversupply. Despite Venezuela holding about 17-18% of the world’s crude oil reserves—more than Saudi Arabia—the report highlights that demand is weakening amid accelerating electrification of auto markets in China, Europe, and elsewhere. This shift, combined with slowing economic activity and trade tensions, has led to a surplus of crude oil, with global production outpacing consumption and resulting in significant inventory builds, particularly in the latter half of 2025. The EIA notes that crude oil prices are expected to fall from a high of $79 per barrel in January to a low of $63 per barrel in December, marking the lowest annual average price since early 2021. The report also underscores that these inventory increases—over 2.5 million barrels per day in the final two quarters—are the largest recorded since 2000, aside from the pandemic