Oil prices were largely unchanged in Asian trading on Monday after large swings last week amid Iran supply risk worries, as attention turned to U.S. President Donald Trump’s tariff threats to Europe over his push to acquire Greenland.
As of 21:10 ET (02:10 GMT), Brent Oil Futures expiring in March were largely unchanged at $64.10 per barrel. West Texas Intermediate (WTI) crude futures were not traded on Monday due to a U.S. public holiday.
Oil prices ended last week higher overall, but sharp early gains were pared after comments from Trump eased fears of an imminent military escalation involving Iran.
Oil steadies as Iran supply risks ease
Crude prices had rallied earlier last week on worries that unrest in Iran could disrupt oil supplies from the Middle East, a region that accounts for a significant share of global output.
However, much of that premium faded after Trump said there would be no immediate U.S. military intervention, prompting a pullback in prices before they stabilized toward the end of the week.
Trump threatens EU tariffs over Greenland
Attention has now shifted to trade developments after Trump said he would impose tariffs on eight European nations that have opposed his plan for the United States to acquire Greenland.
The countries targeted include France, Germany, and the United Kingdom, along with several Nordic and northern European states.
Trump said a 10% tariff would take effect on Feb. 1, rising to 25% in June if no agreement is reached, raising the prospect of a broader transatlantic trade dispute.
Media reports suggested that the European Union is preparing to halt a proposed EU-U.S. trade deal in response and may revive a 93 billion euro package of tariffs on U.S. goods.
French officials have also pushed for the EU to deploy its anti-coercion instrument against Washington, a move that could significantly escalate tensions between the two sides, reports showed.
"There will likely be plenty of noise this week around these developments, particularly as both world and business leaders gather for the World Economic Forum in Davos," ING analysts said in a research note.
Market participants are also monitoring broader macroeconomic signals, including expectations of U.S. interest rate cuts later this year, which could support oil demand by easing financial conditions.
Source: Investing