INSUBCONTINENT EXCLUSIVE:
Oil prices rose modestly on Friday, February 7, 2025, as markets reacted to United States sanctions targeting Iranian oil exports to
China.However, the gains failed to offset a third consecutive week of losses for crude, reflecting persistent bearish sentiment driven by
geopolitical tensions and global economic uncertainty.West Texas Intermediate (WTI) crude settled at $71.00 per barrel, up 0.55% or $0.39
for the day, while Brent crude closed at $74.66 per barrel, gaining 0.49% or $0.37.Despite these daily increases, WTI and Brent recorded
weekly declines of 2.10% and 1.15%, respectively
from the Middle East.Oil Prices Edge Higher Amid United States Sanctions on Iran but Close Another Bearish Week
(Photo Internet reproduction)Analysts like Alex Hodes from StoneX noted that markets are still assessing the impact of these sanctions on
However, broader market dynamics, including oversupply concerns and weak demand forecasts, continued to weigh on prices.Renewed tariff
threats from United States President Donald Trump against China and other trading partners further dampened sentiment
These threats heightened fears of slower global economic growth
Such a slowdown could reduce energy demand in key markets like Asia and Europe.WTI and Brent OilTechnical analysis showed WTI facing
resistance at $72 and support near $70
Traders are closely monitoring whether prices might dip below this critical level in the coming weeks.Brent exhibited similar patterns, with
resistance near $75.66 providing a ceiling for gains during the week
The geopolitical landscape added further complexity to the market outlook.The ongoing war in Ukraine remained a focal point as Ukrainian
President Volodymyr Zelensky expressed interest in securing additional United States support against Russia.Meanwhile, Russia signaled
openness to dialogue but reported no concrete progress toward resolving the conflict
transition plan for the region.Although this development had a limited immediate impact on global oil prices, it highlighted shifting
dynamics in regional energy policies
On the supply side, United States oil production showed resilience despite declining prices, with the active rig count increasing by six to
577 this week.However, non-OPEC production growth continues to outpace demand growth globally, contributing to bearish price pressures
Energy-related exchange-traded funds (ETFs) reflected mixed investor sentiment throughout the week.While some inflows were observed due to
geopolitical risks, overall activity suggested caution
Investors weighed short-term volatility against longer-term oversupply concerns.The market narrative remains one of uncertainty as traders
balance geopolitical risks with structural oversupply and weak demand growth forecasts
modest gains offered little relief after a week dominated by bearish trends and mounting economic concerns
As February unfolds, market participants will continue monitoring developments in United States -China trade relations, OPEC+ production
