Why 2025 has been such a historic year for oil — with prices set to finish near a 5-year low
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Why 2025 has been such a historic year for oil — with prices set to finish near a 5-year lowListen(7 min)Listen(7 min)The world has more oil than it needs, but a drop in crude prices this week to the lowest level in nearly five years may help slow production and boost demand — potentially eating into a supply surplus that was expected to grow in 2026.“Current prices are unsustainable, and we’re seeing [drilling] rigs drop and demand rise already,” said Josh Young, chief investment officer of oil-and-gas investment firm Bison Interests. The number of active U.S. rigs drilling for oil was down about 14% compared to a year ago as of Dec. 12, according to data from Baker Hughes BKR.About the AuthorMyra P. Saefong, assistant global markets editor, has covered the commodities sector for MarketWatch for 20 years. She has spent the bulk of her years at the company writing the daily Futures Movers and Metals Stocks columns and has been writing the weekly Commodities Corner column since 2005.Copyright © 2025 MarketWatch, Inc. All rights reserved.