FX.co ★ Oil Prices Hold Steady

WTI crude oil futures were steady at approximately $59.4 per barrel on Tuesday, following two consecutive days of gains. Ongoing trade tensions and continual supply concerns have kept prices stable. The discord between the US and the EU has cast doubt on the forecast for global oil demand. The conflict, which revolves around the acquisition of Greenland, intensified after President Trump threatened to impose a 10% tariff on products imported from eight European nations starting February 1. This tariff could increase to 25% by June should no resolution be reached. Meanwhile, concerns over immediate supply disruptions from Iran have diminished after Trump suggested a postponement of military action, alleviating some anxiety about potential interruptions to oil flows from the Middle East. These factors coexist with the market's struggle with a substantial supply surplus. Investors await the International Energy Agency’s monthly report, due Wednesday, for new perspectives on global supply and demand dynamics.