Oil steadied as tensions over Iran cooled and wider markets had a risk-off tone with President Donald Trump’s push to take Greenland.
Brent traded near $64 a barrel, while West Texas Intermediate was above $59. While there wasn’t a ratcheting up of tensions in Iran over the weekend, Supreme Leader Ayatollah Khamenei said several thousand people died in this month’s anti-government demonstrations. Earlier, traders had been concerned about potential disruptions to supplies from the OPEC member.
At least one US aircraft carrier had been moving to the Middle East, as of Friday, according to Fox News, citing military sources. Trump — who indicated last week that he would hold off on attacking Iran — is due to address the World Economic Forum in Davos, Switzerland, later this week.
Concerns over Trump’s latest gambit on Greenland, including a threat to impose of tariffs on some European nations, hurt sentiment. Treasury Secretary Scott Bessent told NBC that direct US control of the territory would boost deterrence. In wider markets, stocks fell, while gold hit a record.
Crude has been under pressure in recent quarters on concern supply is outpacing demand, with market watchers like the International Energy Agency forecasting a major oversupply of 3.8 million barrels a day this year. Even so, pockets of tightness remain, including a shortage in supplies from Kazakhstan driven by issues in the Black Sea. Brent timespreads have strengthened.
“Brent remains caught in a complex dance between, on the one hand rising geopolitical risks, and rising production and inventories on the other,” said Robert Rennie, head of commodity and carbon research at Westpac Banking Corp. A sharp deterioration on the ground in Iran would risk pushing prices above $70, although the near-term focus has switched to Greenland from Iran, which has been exerting bearish pressure on prices, he said.
The Paris-based IEA is due to issue its first monthly market snapshot of 2026 on Wednesday, having consistently flagged prospects for a glut this year after supply hikes from OPEC+ as well as drillers outside the alliance.
Monday, volumes may be lower than usual due to a holiday in the US.
| Prices: |
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| Brent for March settlement rose 0.2% to $64.26 a barrel at 11:58 a.m. in Singapore.WTI for February delivery was 0.2% higher at $59.57 a barrel. |
SOURCE: moneyweb.co.za
