FX.co ★ Oil Eases Some Losses

On Wednesday, West Texas Intermediate (WTI) crude oil futures saw a recovery, reaching approximately $60.5 per barrel. This came after President Donald Trump announced that the United States aims to acquire Greenland through negotiated means, pledging no use of force, which helped alleviate immediate geopolitical tensions. Earlier in the session, crude benchmarks had dipped by about 1.5% due to Trump's renewed interest in Greenland and fresh tariff threats against Europe, stoking fears of escalated trade tensions and diminished global demand. However, market sentiment improved following his remarks in Davos, despite ongoing strained relations between the US and the EU, and the suspension of a trade agreement after the European Parliament paused its ratification vote. Additional support for prices came from the International Energy Agency, which revised its 2026 global oil demand growth forecast upward while slightly decreasing expectations for an oversupply, even though a significant surplus is still anticipated. According to the IEA, stockpiles could increase by 3.7 million barrels per day this year, maintaining pressure on prices.