Trending:Susie Wiles interviewBondi Beach shootingUS-Venezuela tensionsRob Reiner deathIPL AuctionHomebound shortlisted for OscarsCrude oil prices crash to $55 a barrel — the lowest level since early 2021FP News Desk • December 17, 2025, 13:45:00 ISTWhatsapp Facebook TwitterAmid excess supply and high hopes for an end to the war between Russia and Ukraine, crude oil prices have fallen to $55 a barrel — the lowest level since early 2021. If oil producers don’t cut supply, strategists see prices falling into $40s or even $30s a barrel in 2026. AdvertisementSubscribe Join Us+ Follow us On GoogleChoose Firstpost on GoogleRosneft's Russian-flagged crude oil tanker Vladimir Monomakh transits the Bosphorus in Istanbul, Turkey. (Representational image, Credit: Reuters)Amid excess supply and high hopes for an end to the war between Russia and Ukraine, crude oil prices on Tuesday fell 3 per cent to below $55 a barrel at one point — the lowest level since early 2021. Futures on US benchmark West Texas Intermediate (WTI) fell by more than 3 per cent to below $55 and international pricing benchmark Brent crude’s futures fell by over 2 per cent to below $59 a barrel, according to Yahoo Finance. STORY CONTINUES BELOW THIS ADFor both of these benchmarks, these were the lowest levels since 2021 when oil prices had fallen to their lowest point in years because of the Covid-19 pandemic. More from World Trump’s Russia strategy clashes with Republicans’ push to back Ukraine and NATO Trump is 'extremely frustrated' with Russia, Ukraine as he pushes to end the war: White HouseAnalysts have attributed these low prices to excess supply by oil producing countries, including the cartel of Organization of the Petroleum Exporting Countries and its allies (OPEC+), and progress in Russia-Ukraine talks that have led to hopes that the war could soon end and Russian oil’s supply could increase. Under President Donald Trump, the United States has also been increasing oil production and is set to extend the surge in supplies into the new year. Owing to these factors, both Brent and WTI crude are set to close the year 20 per cent lower year-on-year. Market ‘cartoonishly oversupplied’ as crude could drop to $30s, say analystsAnalysts have said that the oil market is “cartoonishly oversupplied” and warned crude prices could drop into $40s or $30s a barrel. In a note cited by Yahoo, JPMorgan strategists wrote that while demand remains robust, the supply is “simply too abundant”Quick ReadsView AllUK inflation falls to 3.2% in November, boosting expectations of Bank of England rate cutElon Musk’s X wins appeal against Australia ban on Charlie Kirk shooting footage: 'Uphold free speech'If the OPEC+ cartel does not cut supplies and other producers don’t slow down as well, the strategists said crude could drop into the $40s or even $30s a barrel — levels that would be catastrophic for the industry and not seen since the oil prices hit rock bottom in 2020 during the pandemic. STORY CONTINUES BELOW THIS ADMacquarie oil analysts summed up the situation as being “cartoonishly” oversupplied.“Our near-term balances now appear even more bearish than what we had previously characterized as ‘cartoonishly’ oversupplied,” the note said, as per Yahoo. Follow Firstpost on Google.
