Oil Prices Stabilize as Geopolitical Tensions Over Greenland Ease

SadaNews - Oil prices stabilized as geopolitical tensions related to Greenland eased, supporting broader markets and offsetting a range of supply-related factors.

Brent crude traded above $65 per barrel after a 2% rise over the past two days, while West Texas Intermediate crude was nearing $61.

U.S. President Donald Trump stated that he would refrain from imposing tariffs on Europe due to the Arctic island, indicating that a framework for a potential agreement had been reached.

Supply Pressures and Market Balance

Oil recorded a slight increase in the early weeks of the new year, primarily supported by a wave of disturbances in Iran, which have now subsided, along with shipment disruptions from Kazakhstan.

This progress came despite widespread concerns that global crude supplies could exceed demand, following continuous production increases from OPEC+ members and producers outside the alliance.

The International Energy Agency maintained its forecast for a significant market surplus this year on Wednesday, although it slightly raised its demand growth estimate.

Rise in U.S. Stockpiles

In the United States, considered one of the most transparent oil markets in terms of data, inventories rose by 3 million barrels last week, according to the American Petroleum Institute, an industry body. Official data on inventory levels is due later Thursday.

Broader supply issues continue to weigh on expectations. The "Caspian Pipeline Consortium" is now set to operate, pushing loading operations to increase as Venezuelan supplies return to the global market.

Meanwhile, India's Reliance Industries has again purchased Russian crude, with deliveries scheduled for February and March.

Indian "Reliance" Resumes Russian Oil Purchases After Suspension due to Sanctions

Chris Weston, head of research at "Pepperstone Group," said: "We have seen some interest in purchasing Brent and West Texas Intermediate crude following Trump's speech in Davos and his social media posts," referring to the U.S. president's statements at the World Economic Forum, as well as his comments regarding Greenland.

However, he added: "That said, there is not a strong conviction to chase this move aggressively. The supply backdrop remains a burden, limiting the extent of any upward movement."