Forex Analysis & Reviews: 07.02.2025 - Brent Finds Support as the...

Live Chat

InstaForex - Official partner of Dragon Racing

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Headquarters

Key documents

Social Responsibility

InstaForex - Official partner of Dragon Racing

07.02.2025 12:44 PM

Brent Finds Support as the Market Awaits Confirmation of an Uptrend

Brent crude continued its decline in yesterday's trading, falling another 0.6%. However, during the final trading session of the week, the market is showing a rebound, with Brent rising 0.7% and briefly reaching $75.3 per barrel.

Geopolitical Tensions Remain a Key Uncertainty

Following a meeting between Donald Trump and Benjamin Netanyahu, the U.S. president stated that Gaza would come under Washington's control, and Palestinians would be relocated to safer regions.

This statement triggered a strong reaction from Hamas, which rejected the possibility of relocation. Later, U.S. Secretary of State Marco Rubio clarified that while the U.S. is ready to participate in Gaza's reconstruction, it has no intention of controlling the territory. Additionally, the U.S. defense minister ruled out deploying American troops to the region.

These conflicting statements reflect Trump's administration's attempt to soften its stance, yet they continue to impact the oil market.

At the same time, Trump renewed his calls for lower oil prices, causing a short-term drop in Brent prices. However, the market quickly recovered, suggesting that oil traders are becoming more accustomed to high volatility triggered by political remarks.

Technical Outlook on Brent Crude

Brent tested support at $74.85 but failed to break lower. This provided bulls with a chance for a rebound, with the next upside target at $76.7.

However, it is too early to confirm a full trend reversal—more signals are needed to validate the market's readiness for a sustained uptrend. If buyers maintain momentum, Brent could consolidate above $76.7 and move toward the $77–78 range.

Gas

Natural gas futures remain below descending resistance, with a potential breakout toward $3.5/MMBtu. The outlook remains mixed, keeping market participants on edge.

EIA Report Highlights Divergent Trends

U.S. gas prices declined, while international markets saw strong gains.
Henry Hub spot prices fell from $3.29 to $3.22 within a week.
LNG prices in East Asia rose by $0.32 to $14.40, while Dutch TTF futures surged by $1.00 to $16.08.

Key Market Drivers & Potential Impact

U.S. Sanctions on Iranian Oil

The U.S. Treasury Department expanded sanctions against financial networks linked to Iranian oil exports to China.

Market Impact: Increased uncertainty over Iranian crude supply could reshape trade flows and support global oil prices.

Russian Urals Crude Plunges Below $60

Urals crude fell below $60 per barrel, widening the discount to Brent to nearly $16. The G7 price cap remains at $60, limiting insurance and transportation for Russian oil above this level.

Market Impact: If Urals continues to decline, it may affect Russian budget revenues and shift more crude flows toward Asia.

Decline in Chinese Refinery Output

China's private refiners cut production to pandemic-era levels, citing reduced crude supply from Russia.

Market Impact: This reinforces the broader trend of shifting global trade flows due to sanctions and geopolitical instability.

European Refinery Maintenance Season

European crude prices hit multi-month lows, coinciding with the start of refinery maintenance season.

Market Impact: Temporary reduction in crude demand from European refiners could pressure Brent prices in the short term.

Slower U.S. Oil Production Growth

U.S. shale producers signaled a 25% slowdown in output growth in 2025, particularly in the Permian Basin.

Market Impact: Long-term support for oil prices, especially if OPEC+ maintains production cuts.

Shipping Risks in the Red Sea

Oil majors are urging renewed safe passage through the Red Sea, a critical transit route for crude and LNG.Market Impact: Any escalation could push freight rates higher, adding logistical risks to global energy supply chains.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

If you have any content questions, please contact editorial-board@instaforex.com

Fundamental analysis

Geopolitical Tensions Remain a Key Uncertainty