Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease geopolitical tensions and improve market sentiment. At 10:07 p.m. ET, Brent crude futures edged up 0.1% to $65.31 per barrel, while West Texas Intermediate (WTI) crude rose 0.2% to $60.74 per barrel.

These small gains came after two consecutive sessions in which oil prices were driven by concerns about supply disruptions. One such issue was the temporary shutdown of oil production from the Tengiz and Korolev fields in Kazakhstan, operated by OPEC+ producers, on Sunday. This supply disruption also boosted oil prices despite rising US stockpiles.

Trump dropped the threat of tariffs on Europe after stating that a framework agreement with Denmark regarding Greenland had been reached. This eased tensions between the US and Europe, which had raised concerns about worsening international relations and negatively impacting global growth and energy demand.

Despite easing geopolitical tensions, the oil market remains wary of other developments. US crude oil inventories reportedly rose by 3.04 million barrels in the week ending January 16, following a surge of more than 5 million barrels the previous week, according to data from the American Petroleum Institute (API). This increase in inventories indicates a supply glut in the market.

On the demand side, oil prices were supported by the International Energy Agency's (IEA) revised global demand growth forecast, which raised its projection for 2026. However, the IEA also warned that the oil market would remain in a large surplus until 2026, which could limit the potential for a short-term price surge. (az) [sma]

Source : Newsmaker.id