Oil fell as tensions over Iran cooled and wider markets carried a risk-off tone with President Donald Trump's push to take over Greenland.
Brent dropped below $64 a barrel, while West Texas Intermediate was near $59. While there wasn't a significant ratcheting up of tensions in Iran over the weekend, Supreme Leader Ayatollah Khamenei said several thousand people died in this month's anti-government demonstrations. Earlier, traders had been concerned about potential disruptions to supplies from the OPEC member.
At least one US aircraft carrier had been moving to the Middle East, as of Friday, according to Fox News, citing military sources. Trump — who indicated last week that he would hold off on attacking Iran — is due to address the World Economic Forum in Davos, Switzerland, later this week.
Concerns over Trump's latest gambit on Greenland, including a threat to impose of tariffs on some European nations, hurt sentiment. US Treasury Secretary Scott Bessent told NBC that direct US control of the territory would boost deterrence. In wider markets, stocks fell, while gold and silver hit records.
Crude has been under pressure in recent quarters on concern supply is outpacing demand, with market watchers like the International Energy Agency forecasting a major oversupply of 3.8 million barrels a day this year. Even so, pockets of physical tightness remain, including a shortage in supplies from Kazakhstan driven by issues in the Black Sea. Brent timespreads have widened.
On Monday, trading volumes may be lower than usual due to a holiday in the US.
Prices:
- Brent for March settlement fell 0.5% to $63.84 a barrel at 8:09 a.m. in Singapore.
- WTI for February delivery declined 0.4% to $59.18 a barrel.
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