Story perspectives

Oil Prices Plunge: U.S. Hits Lowest Since 2021

12/17/2025

Summary

Story summary

Oil prices fell to their lowest levels since 2021, with U.S. benchmark West Texas Intermediate trading around $55 per barrel due to increased production by OPEC+ and concerns over a surplus.
Gasoline prices also decreased, averaging $2.91 per gallon.
In the UK, the Energy Profits Levy has imposed a significant tax burden on oil companies, leading to consolidation amid declining revenues.
The North Sea Future Plan aims to manage existing fields while halting new exploration, risking job losses and further production declines.
The UK's crude production has halved in five years, resulting in a shift to net-importer status.

History

Historical Context

The 1973 Oil Crisis began when the Organization of Arab Petroleum Exporting Countries (OAPEC) imposed an embargo in October, leading to a 400% increase in oil prices and a 30% drop in U.S. oil imports. This crisis marked a significant shift in global energy dynamics, prompting long-term changes in energy policy and economic strategies, including the UK's Energy Profits Levy and concerns over energy security.

1 of 2

Story summary

Oil prices fell to their lowest levels since 2021, with U.S. benchmark West Texas Intermediate trading around $55 per barrel due to increased production by OPEC+ and concerns over a surplus.
Gasoline prices also decreased, averaging $2.91 per gallon.
In the UK, the Energy Profits Levy has imposed a significant tax burden on oil companies, leading to consolidation amid declining revenues.
The North Sea Future Plan aims to manage existing fields while halting new exploration, risking job losses and further production declines.
The UK's crude production has halved in five years, resulting in a shift to net-importer status.

1 / 2