Brent crude oil demonstrated subtle but notable strength this week, closing at $60.47 after a series of intraday swings. While the commodity remained range-bound, traders showed gradual confidence as global supply indicators tightened and macro data softened the dollar. The price development comes as energy markets navigate geopolitical uncertainty and evolving expectations for demand at the start of 2025.

Moderate Gains Driven by Supply Considerations

Brent’s weekly performance reflected a mild but persistent upward bias, supported by tightening expectations on the supply side. Prices dipped below $59.50 early in the week but steadily recovered as production adjustments from key exporters contributed to stability. Traders responded to reports of reduced North Sea output and ongoing discipline among OPEC+ members, which collectively kept the market supported. Although no major supply shocks occurred, the consistent intraday recovery patterns signal that investors remain attentive to any further signs of tightening—especially as inventories in OECD countries continue to normalize.

Investor Sentiment Improves as Dollar Eases

Another factor supporting Brent this week was the relative easing of the U.S. dollar, which softened slightly amid shifting expectations for the Federal Reserve’s monetary policy trajectory. Although markets remain divided on the timing of future rate adjustments, the pullback in dollar strength helped reinforce oil’s pricing floor. Intraday chart movements show that Brent prices repeatedly found support around $59.80 before climbing toward the week’s closing range near $60.50. For Israeli and global investors, this interplay between currency movements and energy pricing remains essential, especially as energy-importing nations assess the impact on inflation dynamics.

Range-Bound Trading Reflects Cautious Global Demand Outlook

Despite the week’s modest rise, Brent crude remained confined to a narrow band—reflecting persistent uncertainty surrounding global demand growth. Economic indicators from major economies showed mixed results, and concerns about slower industrial activity in parts of Asia limited bullish momentum. Still, the market demonstrated resilience as the last price moved toward the upper bound of the weekly range. Volume remained steady, suggesting continued engagement but without aggressive positioning. This balanced activity underscores a market waiting for decisive catalysts—either from macroeconomic momentum or geopolitical developments affecting supply routes.

The coming weeks may be pivotal for Brent crude, especially if new data points alter expectations regarding global demand or if OPEC+ signals any willingness to adjust production strategies further. A sustained move above $61 could open the door to short-term upside momentum, while failure to hold above $59.50 may revive bearish sentiment. Investors should monitor U.S. economic releases, currency volatility, and any geopolitical shifts that could influence supply chains. With energy markets entering a period of heightened sensitivity, the backdrop suggests opportunities alongside elevated uncertainty—making vigilance essential as the year progresses.