Oil prices fell significantly on Thursday, with traders’ attention shifting back to supply and demand prospects after the hype around Greenland subsided.
Speaking at the World Economic Forum in Davos on Wednesday, US President Donald Trump said that the United States wants to immediately begin negotiations to purchase Greenland from Denmark and does not intend to use military force to seize the island.
Trump later wrote on Truth Social that he had abandoned plans to impose tariffs on a number of European countries in February because he had been able to agree with NATO Secretary General Mark Rutte on a basis for further negotiations on Greenland.
“We are now seeing a decline in the risk premium associated with events surrounding Greenland and the situation in Iran,” said Saxo Bank analyst Ole Hansen.
The price of March Brent futures on the London ICE Futures exchange at 13:15 GMT is $64.42 per barrel, which is $0.82 (1.26%) lower than at the close of previous trading.
WTI crude oil futures for March delivery on the New York Mercantile Exchange (NYMEX) rose in price by $0.76 (1.25%) to $59.86 per barrel.
On Thursday, the market’s attention is focused on the weekly report on energy reserves in the US, which will be released at 7:00 p.m.
Estimates from the American Petroleum Institute (API), published on Wednesday night, showed an increase in US oil reserves last week of 3.04 million barrels.
Traders also continue to monitor the situation in Kazakhstan, where oil production at the Tengiz and Royal fields was suspended this week due to problems with the power distribution systems.
