Oil prices exhibited minimal fluctuations during Asian trading on Thursday, following U.S. President Donald Trump’s retreat from tariff threats concerning Greenland. Meanwhile, investors processed an increase in U.S. crude inventories alongside recent supply disruptions. As of 22:07, Brent Oil Futures expiring in March increased by 0.1% to $65.31 per barrel, while West Texas Intermediate crude futures rose by 0.2% to $60.74 per barrel. Both contracts experienced a slight increase over the past two sessions, bolstered by supply concerns following the decision of OPEC+ producer Kazakhstan to suspend output at its Tengiz and Korolev oilfields on Sunday.

Market sentiment experienced an uptick following Trump’s unexpected moderation of his position on Wednesday regarding Greenland, as he retreated from previous threats to impose tariffs on European countries as a means to facilitate the annexation of the Danish territory. Trump dismissed the prospect of using force and indicated that a framework for a deal was emerging, alleviating concerns about a significant escalation in U.S.–EU tensions that might have negatively impacted global growth and energy demand.

The de-escalation contributed to the stabilization of broader risk sentiment; however, oil markets continued to exhibit caution in light of mixed signals regarding supply and demand. The American Petroleum Institute reported an increase in U.S. crude inventories by 3.04 million barrels for the week ending Jan. 16, following a rise of over 5 million barrels in the preceding week. Gasoline stocks increased by 6.21 million barrels, indicating a decline in demand, whereas distillate inventories, encompassing diesel and heating oil, decreased by 33,000 barrels.

On the demand side, oil prices received a degree of support following the International Energy Agency’s upward revision of its forecast for global oil demand growth in 2026 on Wednesday. Nevertheless, the IEA continues to anticipate that the market will experience a significant surplus through 2026.