Oil steadies as Iran supply fears ease and Greenland moves into spotlight

LONDON: Oil prices were largely steady on Monday as civil unrest in Iran subsided, reducing the likelihood of a U.S. attack that could disrupt supply from the major producer, while the market also tracks developments in the stand-off over Greenland.

Brent crude was down 32 cents, or 0.5%, at $63.81 a barrel by 1417 GMT.

West Texas Intermediate for February lost 26 cents, or 0.44%, to $59.18 a barrel. The contract expires on Tuesday and the more active March contract was at $59.08, also down 26 cents, or 0.44%.

“While the price action in oil has calmed down since last week, it looks like the short-term path continues to be higher,” said IG analyst Chris Beauchamp.

Iran’s violent crackdown has quelled protests that officials say killed 5,000 people. U.S. President Donald Trump, meanwhile, seems to have stepped back from earlier threats of intervention.

“With fears around Iran subsiding over the last few days after rumours of a U.S. attack, the market is now focusing on the Greenland situation and how deep any fallout between the U.S. and Europe could be, as any trade war expansion could impact demand,” said Rystad analyst Janiv Shah.

EU leaders will convene in Brussels on Thursday for an emergency summit after Trump’s threats to impose tariffs on several EU countries over his demand to acquire Greenland, a European Union spokesperson said on Monday.

Trump said on Saturday that European imports would be hit by a wave of increasing tariffs until the United States is allowed to buy Greenland, escalating a dispute over the future of Denmark’s vast Arctic island.

The market was also looking at the risk of damage to Russian infrastructure and distillate supplies at a time when colder weather is forecast to cross North America and Europe, adding to market unease, said PVM Oil Associates analyst John Evans.

U.S. markets are closed on Monday for Martin Luther King Jr. Day.

Kazakh oil venture Tengizchevroil, led by Chevron, said on Monday that it had temporarily halted output as a precautionary measure at the Tengiz and Korolev oilfields after problems with power distribution systems.