BEIJING/SINGAPORE: Oil prices edged up on Thursday, after U.S. President Donald Trump ratcheted down tension with Europe over his demand for Greenland, while disruptions in supply from two large fields in Kazakhstan and a better demand outlook for 2026 lent support.
Brent crude was up 9 cents, or 0.14%, at $65.33 a barrel by 0320 GMT. West Texas Intermediate for March rose 13 cents, or 0.21%, to $60.75 a barrel.
The contracts climbed more than 0.4% on Wednesday, following the previous day's rise of 1.5%, after OPEC+ producer Kazakhstan halted output at its Tengiz and Korolev oilfields because of issues regarding power distribution.
Also on Wednesday, Trump suggested a deal was in sight over the Danish territory, while ruling out use of force to end a dispute that had risked the worst rupture in transatlantic relations in decades.
A pact on Greenland would reduce downside risks from a U.S.-Europe trade war and is supportive of the global economy and demand for oil, said Mingyu Gao, chief researcher for energy and chemicals at China Futures Co Ltd.
"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 U.S. military action in Iran, but added the United States would act if Tehran resumed its nuclear program.
Against the backdrop of the Greenland framework and the receding prospect of action in Iran, oil prices should hold around the level of $60, said Tony Sycamore, an analyst with online broker IG.
Also aiding the market was a revised higher growth forecast for global oil demand in 2026 in the International Energy Agency's latest monthly oil market report, suggesting a slightly narrower market surplus this year.
U.S. 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. - Reuters
