FX.co ★ Oil Rebounds on Tuesday

WTI crude oil futures experienced an increase of over 1%, reaching approximately $60 per barrel, after earlier dipping below $59. This upswing occurred following the temporary shutdown of Kazakhstan’s largest producer's operations at the Tengiz and Korolev fields due to fires at power generation facilities. Concurrently, traders were evaluating growing geopolitical tensions between the United States and Europe. The market shift was influenced by renewed pressure from President Donald Trump regarding Greenland, with European leaders indicating a strong stance against potential US tariffs. In anticipation of his address at Davos, Trump reiterated the US interest in Greenland, while downplaying the likelihood of European Union opposition. This development has reignited concerns about a possible broader trade conflict between the US and the EU, which could adversely affect global economic growth, although the immediate repercussions on oil prices have been nominal.