BEIJING/SINGAPORE: Oil prices slipped on Thursday after gaining in previous sessions, as investors assessed the supply and demand outlook, while a report showing a rise in US crude and gasoline stocks last week weighed on prices.
Brent crude was down 28 cents, or 0.43%, at $64.96 a barrel at 0749 GMT.
West Texas Intermediate for March declined 19 cents, or 0.31%, to $60.43 a barrel.
The contracts climbed more than 0.4% on Wednesday following a rise of 1.5% a day earlier, after OPEC+ producer Kazakhstan halted output at its Tengiz and Korolev oilfields due to power distribution issues.
On Wednesday, US President Donald Trump toned down his rhetoric about Greenland by ruling out the use of force and stepping back from tariff threats aimed at Europe.
The cooling of the rhetoric surrounding Greenland would reduce trade tensions between the US and Europe and is supportive of the global economy and oil demand, said Mingyu Gao, chief researcher for energy and chemicals at China Futures.
“At the same time, the United States has not ruled out possible military involvement in Iran, which is also supporting oil prices,” Gao said.
Trump said on Wednesday he hoped there would be no further US military action in Iran, but added the US would act if Tehran resumed its nuclear program.
Against the backdrop of Greenland and the receding prospect of action in Iran, oil prices should hold at around $60 a barrel, said Tony Sycamore, an analyst with online broker IG.
Also Wednesday, Trump said he believed “we’re reasonably close” to a deal to end the war between Russia and Ukraine, adding he would meet Ukrainian President Volodymyr Zelenskiy later in the day.
An end to the war would likely result in the removal of US sanctions on Russia, which would limit supply disruptions and weigh down prices.
The International Energy Agency revised its 2026 global oil demand growth forecasts higher on Wednesday in its latest monthly oil market report, suggesting a slightly narrower surplus for the market this year.
US crude and gasoline stocks rose, while distillate inventories fell last week, market sources said on Wednesday, citing figures from the American Petroleum Institute.
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.
Eight analysts polled by Reuters forecast an average rise of about 1.1 million barrels in crude inventories 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.
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