Oil prices moved slightly higher on Thursday as geopolitical tensions eased and supply disruptions supported the market. Sentiment improved after U.S. President Donald Trump softened his stance toward Europe over Greenland, while outages at two major oilfields in Kazakhstan and a more optimistic long-term demand outlook added further support.
Brent crude rose 9 cents, or 0.14%, to $65.33 a barrel by 03:20 GMT. U.S. West Texas Intermediate (WTI) for March delivery climbed 13 cents, or 0.21%, to $60.75 a barrel.
Supply disruptions lift prices
Oil futures extended gains from the previous session, after rising more than 0.4% on Wednesday, following a 1.5% increase a day earlier. The rally came after OPEC+ producer Kazakhstan suspended output at the Tengiz and Korolev oilfields due to power distribution issues, tightening near-term supply.
Greenland tensions ease, boosting sentiment
Also on Wednesday, Trump indicated that a framework agreement over the Danish territory of Greenland could be close, while ruling out the use of force. The comments eased fears of a sharp deterioration in transatlantic relations and reduced concerns over a potential U.S.–Europe trade conflict.
According to Mingyu Gao, chief researcher for energy and chemicals at China Futures Co Ltd, a Greenland deal would lower downside risks to the global economy and support oil demand. Gao added that lingering uncertainty over Iran, including the possibility of renewed U.S. military involvement if Tehran restarts its nuclear program, is also underpinning prices.
Outlook supported by demand expectations
Trump said he hoped there would be no further U.S. military action involving Iran, but stressed that the United States would respond if Iran resumed its nuclear activities. Against this backdrop, analysts expect oil prices to remain supported near current levels.
Tony Sycamore, an analyst at online broker IG, said that easing geopolitical risks around Greenland and Iran should help keep oil prices trading around the $60 mark.
Further support came from the International Energy Agency, which raised its forecast for global oil demand growth in 2026 in its latest monthly report. The revision suggests a slightly smaller market surplus this year, improving the medium-term outlook.
Inventories cap further gains
At the same time, rising U.S. inventories are limiting upside momentum. Data from the American Petroleum Institute showed crude stocks increased by 3.04 million barrels in the week ended January 16. Gasoline inventories rose by 6.21 million barrels, while distillate stocks fell by 33,000 barrels.
A Reuters poll of analysts pointed to an average increase of around 1.1 million barrels in crude inventories for the same period. According to Yang An, an analyst at Haitong Futures, elevated stock levels are restraining further price gains in an already well-supplied market.
