Oil Flat, Greenland Drama Heats Up Sentiment
Oil prices moved nearly flat on Monday (January 19th), as the market assessed that the risk of supply disruptions from Iran was beginning to ease. The easing of civil unrest in Iran has eased concerns about US military action that could disrupt export flows from the key Middle Eastern producer. At the same time, market players' focus shifted to escalating political and trade tensions surrounding Greenland, which has added a new layer of uncertainty to global markets.
At 19:46 GMT, Brent edged up 1 cent to $64.14/barrel, while February WTI held at $59.44/barrel. Movements were likely limited due to thin liquidity—the US market was closed for Martin Luther King Jr. Day, resulting in quieter-than-usual trading activity.
Geopolitically, Iranian authorities said a crackdown had quelled a wave of protests that officials say have claimed up to 5,000 lives, while US President Donald Trump appeared to tone down his previously strong threats of intervention. However, the market hasn't completely calmed down: Trump has actually increased pressure on Europe over the Greenland issue, including threats of tariffs against countries deemed to be blocking his plans—prompting the European Union to begin considering retaliatory measures and schedule an emergency meeting in Brussels for Thursday. Although Greenland is not an oil producer, market participants see this conflict as a trigger for a "risk-off" that has already pressured global stocks and weakened the dollar against safe-haven assets like the yen and Swiss franc.
Source: Newsmaker.id
