Oil prices moved little in Asian trade on Tuesday amid growing caution over the U.S.’ demands for Greenland, while focus remained on any signs of a potential supply glut in 2026.
A U.S. market holiday on Monday made for muted trading volumes, while markets also digested a mixed gross domestic product print from China.
Brent oil futures for March steadied at $63.96 a barrel by 20:19 ET (01:19 GMT), while West Texas Intermediate crude futures fell slightly to $59.29 a barrel, remaining close to Friday’s close after no settlement on Monday.
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Oil was pressured by signs of easing national unrest in major producer Iran, which in turn saw traders price out some risk premium from crude.
Trump-Greenland tariffs rattle markets Oil prices clocked wild swings on Monday after U.S. President Donald Trump threatened to tariff several major European countries until a deal is reached to hand over Greenland to Washington.
Trump threatened tariffs as high as 25% against European majors including France, Denmark, and the UK, and also did not rule out the possibility of deploying the military over Greenland.
Financial markets across the globe retreated following Trump’s comments, with heightened geopolitical uncertainty driving traders squarely into safe havens such as gold.
Trump has repeatedly demanded Greenland be handed over to the U.S., claiming that such a move is essential for the U.S.’ security. His recent incursion in Venezuela left markets cautious over any more U.S. military action.
IEA monthly report, US inventories in focus Beyond geopolitical tensions, focus this week is squarely on a monthly report from the International Energy Agency, due on Wednesday.
The report will be watched for more cues on oil supplies, with the IEA having repeatedly warned of a brewing supply surplus in 2026. The body is expected to provide forecasts for 2027.
The IEA report comes just a week after a monthly report from the Organization of Petroleum Exporting Countries presented a positive outlook for demand in 2026 and 2027.
Data on U.S. oil inventories is also due in the coming days, offering more cues on demand and supply in the world’s largest oil producer.
