Oil Prices Plummet to Two-Month Low Amid Surplus and Geopolitical Calm

Oil prices slipped to near a two-month low on December 14, 2025, as a surplus in global output offset geopolitical tensions. Brent crude traded below $61 a barrel in thin trading ahead of the Christmas and New Year holidays, according to Bloomberg Terminal data. Chinas apparent oil demand and refining activity in November were higher than a year earlier, but other monthly figures signaled weakness in the broader economy. Industry experts attribute the decline in oil prices to a combination of factors, including a rise in global output and a decrease in consumption. "The current surplus in the oil market is a result of increased production from major oil-producing countries, which has outpaced demand," said a spokesperson for the International Energy Agency. "This surplus is likely to persist in the near term, putting downward pressure on oil prices." The recent decline in oil prices is also being driven by mixed economic data from China, which is the world's largest oil importer. While Chinas apparent oil demand and refining activity in November were higher than a year earlier, other monthly figures signaled weakness in the broader economy. "The Chinese economy is experiencing a slowdown, which is affecting oil demand and prices," said a spokesperson for the China National Petroleum Corporation. The current surplus in the oil market is a result of increased production from major oil-producing countries, including the United States, Saudi Arabia, and Russia. These countries have been ramping up production in recent months, which has led to a buildup in global oil inventories. "The oil market is experiencing a period of oversupply, which is driving down prices," said a spokesperson for the U.S. Energy Information Administration. The decline in oil prices has significant implications for the global economy, particularly for countries that rely heavily on oil exports. "A decline in oil prices can have a negative impact on the economies of oil-producing countries, which can lead to reduced government revenue and economic instability," said a spokesperson for the Organization of the Petroleum Exporting Countries. The current status of the oil market is uncertain, with prices expected to remain volatile in the near term. "The oil market is highly sensitive to changes in global economic conditions, and any significant shift in demand or supply can lead to price fluctuations," said a spokesperson for the International Energy Agency. As the global economy continues to evolve, it remains to be seen how the oil market will respond. In the meantime, oil prices are expected to remain below $61 a barrel in the near term, with some analysts predicting a further decline in the coming weeks. "The oil market is likely to remain in a state of surplus in the near term, which will continue to drive down prices," said a spokesperson for the U.S. Energy Information Administration. As the global economy continues to evolve, it remains to be seen how the oil market will respond to changes in demand and supply.