Oil prices experienced a slight increase on Thursday, following President Donald Trump's decision to back off his tariff threats over Greenland. This move reduced tensions with Europe, while supply disruptions from Kazakhstan's Tengiz and Korolev oilfields and an improved demand outlook for 2026 provided further support. The Brent crude price rose by 9 cents, or 0.14%, to $65.33 per barrel by 0320 GMT, while West Texas Intermediate for March increased by 13 cents, or 0.21%, to $60.75 per barrel. The market was also boosted by the International Energy Agency's revised higher growth forecast for global oil demand in 2026, suggesting a narrower market surplus this year. However, high crude inventories in the US are limiting further gains in oil prices, as the market remains oversupplied. The situation in Iran, where Trump has not ruled out potential military involvement, also continues to support oil prices. Despite his hopes for no further military action, Trump emphasized that the US would act if Iran resumed its nuclear program. This complex geopolitical landscape, combined with the potential impact of a Greenland pact on transatlantic relations, is expected to influence oil prices in the coming months.
