Photo caption: Oil pump jacks
The prospect of a global oil supply glut seems to be concerning traders as much as President Donald Trump’s push to bring Greenland under U.S. control.
Continuous futures contracts for Brent crude edged down by 0.5% to $64.5 a barrel Wednesday, with West Texas Intermediate trading down to a touch above $60 a barrel.
Trump’s plan to annex Greenland has strained relations with Europe, threatening bidirectional tariffs and undermining risk appetite across financial markets — weighing on assets like commodities, including oil.
Oil has faced other headwinds too, as forecasts suggest global supply will exceed demand in 2026.
The International Energy Agency is scheduled to publish updated monthly guidance on Wednesday, which could warn of a substantial market surplus.
Attention has also turned to Venezuelan shipments, as traders assess potential new destinations for barrels that had largely been sent to China, following recent U.S. seizures earlier this month.
Trump will touch down in Davos later today, and has doubled down on plans to impose 10% tariffs on eight European countries in response to the Greenland dispute, which could weigh on economic growth and, in turn, oil consumption.
For UBS analyst Giovanni Staunovo, geopolitical tensions will continue to add to risk-off sentiment for crude.
=== MSN ===
