BEIJING/SINGAPORE, Jan 22 — Oil prices edged up on Thursday, after United States (US) 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 nine cents, or 0.14 per cent, at US$65.33 a barrel by 0320 GMT. West Texas Intermediate for March rose 13 cents, or 0.21 per cent, to US$60.75 a barrel.
The contracts climbed more than 0.4 per cent on Wednesday, following the previous day's 1.5 per cent rise, after OPEC+ producer Kazakhstan halted output at its Tengiz and Korolev oilfields due to power distribution issues.
Also on Wednesday, Trump suggested a deal was in sight over the Danish territory, while ruling out the use of force to end a dispute that had risked the worst rupture in transatlantic relations in decades.
China Futures Co Ltd's energy and chemicals chief researcher Mingyu Gao said that a pact on Greenland would reduce downside risks from a US-Europe trade war and support the global economy and oil demand.
"At the same time, the United States has not ruled out possible military involvement in Iran, which is also supporting oil prices," he said.
On Wednesday, the President said that he hoped there would be no further US military action in Iran, but added that Washington would act if Tehran resumed its nuclear programme.
Online broker IG's analyst Tony Sycamore said that against the backdrop of the Greenland framework and the receding prospect of action in Iran, oil prices should hold around US$60.
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.
On Wednesday, anonymous market sources said that US crude and gasoline stocks rose while distillate inventories fell last week, citing figures from the American Petroleum Institute (API).
They added that crude stocks rose by 3.04 million barrels in the week ended January 16, according to the API. Gasoline inventories rose by 6.21 million barrels, while distillate inventories fell by 33,000 barrels.
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 Haitong Futures analyst Yang An.
