Oil prices steady as Greenland tensions and surplus worries in focus

Oil prices steadied as traders monitored the US move on Greenland, and concerns regarding a global surplus.

West Texas Intermediate steadied near $59 a barrel, which was little changed from the previous close on Friday. The rates did not settle on Monday as it was a holiday in the US. Brent ended below $64.

US President Donald Trump’s push to annex Greenland has rocked markets, bruised the dollar, and raised fears of a damaging US-EU trade war.

Crude remains under pressure from signs supply is outpacing demand, with the price of some physical grades in the Middle East declining as OPEC+ producers raise output. The International Energy Agency, which publishes its next market analysis on Wednesday, has consistently warned of a major glut this year.

Still, beyond overarching glut concerns, pockets of tightness remain in some parts of the market, with issues in the Caspian Pipeline Consortium port in the Black Sea and, now, Kazakhstan’s giant Tengiz oil field contributing to a near-term shortfall of crude from the Mediterranean region.

With inputs from Bloomberg

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