Trump Claims "Framework" Deal, Oil Rises
Oil prices rose on Wednesday (January 21) after US President Donald Trump said he was holding back on threatening tariffs against several European countries, while claiming there was a "framework" for a deal on Greenland. This statement provided some relief to the market, as the risk of a trade war—which could depress energy growth and demand—appeared to have eased temporarily.
At the close of trading, the March WTI contract rose slightly to close at $60.62 per barrel, while the March Brent contract strengthened to $65.24 per barrel.
Although the Greenland issue has cooled somewhat, the oil market still holds a "caution premium" due to geopolitical and supply constraints. In Kazakhstan, production disruptions are back in the spotlight: the Tengiz operator reportedly declared force majeure on oil shipments to the CPC pipeline system, and outages at two major fields (Tengiz and Korolev) are said to last several more days.
Conditions in Kazakhstan are also tightening export flows. In fact, oil from the giant Kashagan field was diverted to the domestic market for the first time due to a bottleneck at the CPC Black Sea terminal following equipment failure.
From a fundamental perspective, the IEA raised its 2026 global oil demand growth projection and slightly reduced its surplus forecast, although the market remains projected to be oversupplied. This means prices could be supported if global supply returns to normal.
In conclusion, oil is currently supported by two competing narratives—the Greenland tariff de-escalation has improved sentiment, but supply disruptions (in Kazakhstan) and geopolitics remain a cushion. As long as headlines remain volatile, traders tend to remain fast-paced and sensitive to news.
Source: Newsmaker.id
