Oil prices fell about 2% on Thursday to a one-week low as geopolitical risk premiums eased following softer rhetoric from U.S. President Donald Trump on Greenland and Iran, alongside tentative progress toward ending Russia’s war in Ukraine. Brent futures settled down $1.18, or 1.8%, at $64.06 a barrel, while U.S. West Texas Intermediate crude fell $1.26, or 2.1%, to $59.36.
Trump said the United States had secured permanent access to Greenland through a NATO deal and signaled hopes to avoid further military action against Iran, reducing fears of supply disruptions. Analysts said the pullback reflected a deflation of risk premium tied to both Greenland tensions and Iranian supply concerns, with prices expected to stabilize near $60 a barrel.
Markets also weighed prospects for a potential Ukraine peace deal, which could eventually lead to eased sanctions on Russia and increased global oil supply. Russian crude output fell 0.8% last year to 10.28 million barrels per day, about a tenth of global production.
Further pressure came from signs of rising supply elsewhere. Venezuelan exports are gradually increasing under U.S.-backed arrangements, and proposed reforms could open the door to greater foreign participation in the country’s oil sector. Adding to the bearish tone, U.S. crude inventories rose by 3.6 million barrels last week, far exceeding expectations, according to EIA data.
Saudi Aramco’s CEO pushed back on concerns about a global oil glut, saying demand growth remains strong and inventories are tight, but easing geopolitical tensions and rising supply capped prices on the day.