Oil prices experienced a slight increase on Thursday, following President Donald Trump's decision to back off his tariff threats over Greenland. This move helped ease tensions with Europe, while supply disruptions from Kazakhstan's Tengiz and Korolev oilfields and a positive outlook for 2026 demand supported the market. The contracts climbed more than 0.4% on Wednesday, following a 1.5% rise the day before due to the power distribution issues at the oilfields. Trump suggested a deal was in sight over Greenland, ruling out the use of force to resolve the dispute, which could have caused a significant rift in transatlantic relations. This pact on Greenland is seen as beneficial for the global economy and oil demand, according to Mingyu Gao, an energy researcher. However, the possibility of U.S. military involvement in Iran remains, which could further support oil prices. Trump expressed hope for no further military action in Iran but warned of potential U.S. intervention if Iran resumes its nuclear program. Against this backdrop, oil prices are expected to stabilize around $60, according to analyst Tony Sycamore. Additionally, the International Energy Agency's revised higher growth forecast for global oil demand in 2026 suggests a narrower market surplus this year, further aiding the market. However, high crude inventories are limiting further gains in oil prices in an oversupplied market, according to analyst Yang An.
