Oil prices fell in Asian trading on Wednesday as investors weighed geopolitical tensions sparked by U.S. President Donald Trump’s push to annex Greenland, while markets await a key outlook from the International Energy Agency (IEA) later in the day.
As of 21:18 ET (01:18 GMT), Brent Oil Futures expiring in March fell 1.2% to $64.16 per barrel, while West Texas Intermediate (WTI) crude futures slipped 1% to $59.75 per barrel.
Both contracts jumped 1.5% in the previous session, helped by better than expected Chinese growth data.
Get premium insights on crude prices and analyst forecasts with InvestingPro US-EU tensions spark risk-off mood Trump’s efforts to take control of Greenland, a semi-autonomous Danish territory, have sent jitters through global markets and raised doubts over the stability of the U.S.–European Union alliance.
The U.S. administration has vowed to impose 10% tariffs on imports from eight European nations over the Greenland dispute, ahead of Trump’s scheduled address at the World Economic Forum in Davos later on Wednesday.
European officials have pushed back strongly against the threats, raising the risk of a broader trade confrontation that could weigh on economic growth and oil demand.
IEA outlook awaited Sentiment remained cautious amid expectations that the IEA’s monthly oil market report, due later on Wednesday, will point to a major supply glut.
The agency is widely expected to forecast that global oil supply will outpace demand growth this year, reinforcing concerns about oversupply and keeping pressure on crude prices.
The body is also expected to provide forecasts for 2027.
On the supply side, OPEC+ producer Kazakhstan said it had halted output at the Tengiz and Korolev oilfields on Sunday due to power distribution problems.
The temporary shutdown provided limited support to prices. A Reuters report said that oil output at the two Kazakh fields may remain shut for a further seven to ten days.
