Oil Faces Deepest Annual Loss Since 2020 Amid Global Surplus Fears

• Oil prices are set for their largest annual drop since 2020, driven by concerns over a significant global supply glut expected to persist into the new year.
• West Texas Intermediate (WTI) fell below $58 a barrel, marking a nearly 20% decline this year and its fifth consecutive monthly loss. Brent closed above $61.
• Key factors contributing to the decline include a negative US industry report, geopolitical tensions, and an impending OPEC+ meeting.
• Global demand growth has stalled, while supplies from OPEC+ and its competitors have increased, leading to predictions of a surplus by OPEC and a "massive glut" by the International Energy Agency.
• OPEC+ members are expected to meet on January 4 and maintain their strategy to halt further production increases, as API reported a 1.7 million barrel rise in US oil inventories last week.

Why It Matters: Oil prices are plummeting towards their worst year since 2020 due to a looming global supply surplus.