Oil Slips as Investors Sssess Supply Outlook, US Stock Build
Oil prices slipped on Thursday after gaining in previous sessions, as investors assessed the supply and demand outlook, while a report showing a rise in U.S. crude and gasoline stocks last week weighed on prices.
Brent crude was down 28 cents, or 0.43%, at $64.96 a barrel at 0749 GMT. West Texas Intermediate for March declined 19 cents, or 0.31%, to $60.43 a barrel.
The contracts climbed more than 0.4% on Wednesday following a rise of 1.5% a day earlier, after OPEC+ producer Kazakhstan halted output at its Tengiz and Korolev oilfields due to power distribution issues.
On Wednesday, U.S. President Donald Trump toned down his rhetoric about Greenland by ruling out the use of force and stepping back from tariff threats aimed at Europe.
The cooling of the rhetoric surrounding Greenland would reduce trade tensions between the U.S. and Europe and is supportive of the global economy and oil demand, said Mingyu Gao, chief researcher for energy and chemicals at China Futures.
"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 U.S. would act if Tehran resumed its nuclear program.
Against the backdrop of Greenland and the receding prospect of action in Iran, oil prices should hold at around $60 a barrel, said Tony Sycamore, an analyst with online broker IG.
Source : Reuters
