Brent crude oil prices have hit a new low for 2025, falling to $73.92 per barrel on February 6. This marks a decline of over 9% since January 15, continuing a bearish trend in the oil market.
The drop in Brent crude prices is being attributed to a combination of factors, including ongoing trade tensions and policy moves by U.S. President Donald Trump. Reuters reports that key drivers behind the decline include:
- President Trump’s renewed trade conflict with China,
- The threat of new tariff hikes targeting additional countries,
- Elevated oil inventory levels in the United States, and
- Trump’s recent pledge to increase domestic oil production.
In addition to these geopolitical concerns, the U.S. Treasury Department announced new sanctions on individuals and tankers involved in transporting Iranian crude oil to China. This move is adding further volatility to global oil prices.
Outlook for Brent Crude Prices
Technically, Brent crude has reached a crucial support level at around $75 per barrel, a point where bullish forces previously overcame resistance at the close of 2024. Some analysts believe that bulls may remain active at this price range, with the long lower wick on the candlestick chart supporting this view.
However, there are signs that bearish sentiment is gaining momentum. As observed on the XBR/USD chart, the $77 level acted as resistance in February, and the $75 support level has now shifted to resistance. This indicates that market sentiment may be shifting, and traders could see consolidation around current levels as supply and demand forces potentially reach equilibrium.
While some analysts anticipate further volatility, the market is closely watching for any signals of stabilization or continued decline. As always, traders are advised to stay informed of developments, especially in light of U.S. policy shifts and sanctions impacting global supply chains.
FXOpen provides tight spreads for commodity CFDs, offering opportunities for traders to navigate this dynamic market. To learn more about trading commodity CFDs, visit FXOpen.
