Oil slides as Trump tones down threats against Greenland and Iran

Oil prices fell on Thursday, reversing the previous sessions’ gains, after U.S. President Donald Trump softened threats against Greenland and Iran, and as investors assessed the supply and demand outlook.

Brent crude was down $1.25 cents, or 1.92%, at $63.99 a barrel. West Texas Intermediate for March declined $1.24 cents, or 2.05%, to $59.38 a barrel.

The contracts climbed more than 0.4% on Wednesday following a rise of 1.5% a day earlier, after OPEC+ producer Kazakhstan halted output at its Tengiz and Korolev oilfields due to power distribution issues.

“There is a deflation of risk premium related to the Greenland debacle and Iran supply risk has also been reduced,” said Ole Hansen, chief commodity analyst at Saxo Bank.

On Wednesday, Trump ruled out the use of force to acquire Greenland and stepped back from tariff threats aimed at European allies.

Trump also said he hoped there would be no further U.S. military action in Iran, but added the United States would act if Tehran resumed its nuclear programme.

Against the backdrop of Greenland and the receding prospect of action in Iran, oil prices should hold at around $60 a barrel, said Tony Sycamore, an analyst with online broker IG.