BEIJING, Jan 22 (Reuters) - Oil prices edged up on Thursday after the U.S. president stepped back from threats to impose tariffs in his effort to seize Greenland, reducing the risk of a U.S.–Europe trade war and supporting the global economy and oil demand.
Brent crude (LCOc1) was up 10 cents, or 0.15%, at $65.34 a barrel by 0225 GMT. West Texas Intermediate (CLc1) for March rose 14 cents, or 0.23%, to $60.76 a barrel.
The contracts had climbed on Tuesday more than 1.5% and more than 0.4% on Wednesday, after OPEC+ producer Kazakhstan halted output at its Tengiz and Korolev oilfields on Sunday due to power-distribution issues.
U.S. President Donald Trump on Wednesday also ruled out the use of force and suggested a deal was in sight to end a dispute over the Danish territory that risked the deepest rupture in transatlantic relations in decades.
An agreement on Greenland would reduce downside risks from a U.S.–Europe trade war and is supportive of the global economy and demand for oil, said Mingyu Gao, chief researcher for energy and chemicals at China Futures Co Ltd.
Trump also said on Wednesday he hoped there would be no further U.S. military action in Iran, but added that the United States would act if Tehran resumed its nuclear program.
“At the same time, the U.S. has not ruled out possible military involvement in Iran, which is also supporting oil prices,” Gao said.
Against the Greenland framework and the U.S. taking no further action in Iran, oil prices should hold around the $60 level, said Tony Sycamore, an analyst with online broker IG.
U.S. crude and gasoline stocks rose while distillate inventories fell last week, market sources said on Wednesday, citing figures from the American Petroleum Institute. (API/S)
Crude stocks rose by 3.04 million barrels in the week ended on January 16, according to the API, said the sources, who spoke on condition of anonymity.
Gasoline inventories rose by 6.21 million barrels, while distillate inventories fell by 33,000 barrels, the sources said.
An average of the forecasts of eight analysts polled by Reuters had indicated a rise in crude inventories of about 1.1 million barrels for the week to January 16.
“High crude inventories are limiting further gains in oil prices in an oversupplied market,” said Yang An, an analyst at Haitong Futures.

Oil prices increased slightly after President Trump backed away from tariff threats regarding Greenland, easing U.S.–Europe trade war concerns. Brent crude rose 0.15% to $65.34, while West Texas Intermediate climbed 0.23% to $60.76. The rise follows OPEC+ producer Kazakhstan's output halt and Trump's comments suggesting a potential resolution over Greenland. Analysts believe oil prices may stabilize around $60, despite rising U.S. crude and gasoline stocks, which limit further price gains in an oversupplied market.

Reuters

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Oil edges up after Trump steps backs from tariff threats over Greenland