Trump’s Greenland Tariff Threat Shakes Oil Markets But Prices Hold Firm

Oil prices remained stable on Tuesday, with Brent crude holding at $64 per barrel and West Texas Intermediate trading below $60. Markets are balancing geopolitical tensions against economic data, creating a complex landscape for traders.

President Trump's renewed push to acquire Greenland has escalated trade tensions with European allies. The administration announced plans to impose 10% tariffs on eight European countries starting February 1, potentially rising to 25% by June if no deal is reached. This MOVE affects key nations including Denmark, Norway, and Germany.

Meanwhile, China reported stronger-than-expected Q4 GDP growth of 5.0% for 2025, with crude oil output rising 1.5% year-on-year. The positive economic data from the world's largest energy consumer provided some support to oil markets.

Supply concerns continue to weigh on the market as OPEC+ producers increase output and Middle Eastern physical grades decline. However, tightness persists in some physical markets due to operational issues at key infrastructure like the Caspian Pipeline Consortium port and Kazakhstan's Tengiz oil field.