INSUBCONTINENT EXCLUSIVE:
Oil prices fell sharply on Tuesday, February 25, 2025, as economic data and trade concerns fueled fears of weaker global energy demand.Brent
crude dropped 2.65%, settling at $73.17 per barrel on the Intercontinental Exchange (ICE), while West Texas Intermediate (WTI) slid 2.95% to
close at $69.05 per barrel on the New York Mercantile Exchange (NYMEX).Both benchmarks hit their lowest levels since December 2024
The Conference Board reported a significant decline in U.S
economic data from the U.S
and Germany, including a contraction in German GDP during the fourth quarter of 2024
These developments heightened worries about reduced energy consumption globally.Geopolitical factors added further pressure to oil markets
However, traders expressed skepticism about the impact, as potential increases in Russian and Iraqi exports could offset any reductions.Oil
Prices Drop Sharply as Economic Concerns Weigh on Global Markets
(Photo Internet reproduction)Meanwhile, speculation about easing sanctions on Russia created uncertainty over future supply levels
disruptions and inflationary pressures.Oil Market UpdateThese factors combined to weigh heavily on oil prices throughout the day
Technical trading also amplified the selloff
Brent failed to break through its 100-day moving average at $75.32 per barrel, while WTI broke below key support at $70, accelerating its
decline toward $67.Both benchmarks remained in short-term bearish trends
Energy-focused exchange-traded funds (ETFs) saw net outflows as investors reduced exposure to oil amid heightened volatility
Trading volumes surged as market participants reacted to the sharp price movements.Analysts remain cautious about near-term price recovery,
with Brent expected to trade between $70 and $75
WTI is likely to test support at $67 if bearish momentum continues.Early Asian trading on February 26 showed slight rebounds for both
benchmarks, supported by reports of declining U.S
Market participants continue monitoring economic data and geopolitical developments for clearer direction, with volatility expected to
persist in the coming days.
