Trump backs down on tariff threats against Greenland, oil prices rise slightly
Oil prices rose slightly on Thursday after Trump eased tensions with Europe over his demands on Greenland. Supply disruptions from two major oil fields in Kazakhstan, along with a more favorable demand outlook for 2026, also supported prices.
Brent crude rose 9 cents, or 0.14%, to $65.33 a barrel as of 03:20 GMT. March WTI crude rose 13 cents, or 0.21%, to $60.75 a barrel.
Oil prices had risen more than 0.4% on Wednesday, following a 1.5% increase the previous day, after OPEC+ member Kazakhstan halted production at its Tengiz and Korolev oil fields.
An agreement on Greenland would reduce risks associated with the US-Europe trade war and support the global economy and oil demand.
The possibility of a US military intervention in Iran, which remains a constant topic of discussion, is supporting oil prices. On Wednesday, Trump stated that the US would act if Tehran resumed its nuclear program.
Given the current situation in Greenland and the reduced likelihood of action in Iran, oil prices are expected to hover around $60.
Another factor helping the market is the International Energy Agency's (IEA) latest monthly oil market report, which revised its forecast for higher growth in global oil demand for 2026, suggesting a slight narrowing of the market surplus this year.
Market sources said on Wednesday, citing figures from the American Petroleum Institute (API), that US crude oil and gasoline inventories increased last week, while distillate fuel inventories decreased.
Sources, citing the API, stated that crude oil inventories rose by 3.04 million barrels in the week ending January 16, while gasoline inventories increased by 6.21 million barrels and distillate fuel inventories decreased by 33,000 barrels.
Analysts had projected an average increase of 1.1 million barrels in crude oil inventories for the week ending January 16.
High crude oil inventories are limiting price increases in a market with a supply surplus.
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