WTI crude oil futures hovered around $59.4 per barrel on Tuesday as traders weighed the implications of renewed trade tensions on energy demand. Frictions between the US and the EU escalated after President Trump threatened to impose extra tariffs on some European allies if the acquisition of Greenland is not agreed. Such measures could dampen economic activity and, in turn, oil demand. Meanwhile, near-term supply risks from Iran eased after Trump signaled a delay in military action, reducing fears of immediate disruptions to Middle Eastern oil flows. These developments come as the market continues to grapple with a significant supply surplus. Still, certain parts of the market continue to face tightness amid disruptions in the Black Sea and a temporary halt at Kazakhstan’s Tengiz oil field. Investors are now looking to the IEA’s monthly report on Wednesday for fresh insights into global supply and demand trends.
