Oil Prices Show Mixed Movement Amid Shifting Supply and Demand in December 2025
Global oil markets experienced fluctuating price trends in December 2025 as changing supply conditions, evolving geopolitical risks, and easing inflation pressures shaped market sentiment.
Market Overview
- Oil price dip: Brent crude slipped to approximately $62.41 per barrel, while WTI moved toward $58.75 per barrel during the first half of December.
- Weaker disruption fears: The decline followed reduced concerns over major supply disruptions, especially as some producing regions stabilized output.
- Supply optimism: Increased production expectations from fields including West Qurna-2 in Iraq helped ease market tightness, contributing to downward pressure on prices.
- Geopolitical counterbalance: Occasional upward support came from tensions such as Ukrainian strikes on Russian oil infrastructure, which temporarily raised concerns over supply risks.
- Investor sentiment: Broader financial markets focused on U.S. Federal Reserve rate decisions and ongoing peace discussions in Europe, influencing oil futures trading volume and volatility.
Market Outlook
Analysts note that price movements may continue to fluctuate due to shifting fundamentals, including evolving geopolitical risks and production adjustments by major oil-exporting countries.
