Oil prices fall on Wednesday

Oil prices fell on Wednesday as expectations of rising US crude inventories outweighed a temporary halt at two major Kazakh fields and geopolitical pressure from US threats of tariffs over Greenland. Brent dropped 97 cents, or 1.5 per cent, to $63.95 a barrel, while US West Texas Intermediate (WTI) lost 78 cents, or 1.3 per cent, to $59.58.

Output at Kazakhstan’s Tengiz and Korolev fields, halted due to power issues, could remain suspended for seven to 10 days. Analysts said the disruption is temporary, but rising US inventories and trade tensions are weighing on prices.

President Donald Trump’s threat of additional tariffs on European nations over Greenland risks slowing economic growth, adding pressure to oil markets. US crude inventories are expected to have risen by about 1.7 million barrels in the week to January 16, while distillate stocks likely fell.

Analysts noted that potential US-Iran tensions following Trump’s threat to strike Iran could support oil prices, but the immediate impact remains uncertain as diplomatic efforts continue.

Attribution: Reuters