Oil prices edge higher on easing U.S. Europe tensions

January 22, 2026 (MLN): Global oil prices edged higher on Thursday as easing geopolitical tensions between the United States and Europe helped improve the outlook for economic growth and fuel demand, while supply disruptions in Central Asia provided additional support.

Brent crude futures climbed 6 cents, or 0.09%, to settle at $65.30 per barrel, according to Mettis Global.

Meanwhile, U.S. West Texas Intermediate (WTI) crude rose 8 cents, or 0.1%, to $60.70 per barrel by 10:34 am PST.

The gains extended a multi-day rally, with oil contracts advancing more than 1.5% on Tuesday and over 0.4% on Wednesday, following an unexpected production halt at Kazakhstan’s Tengiz and Korolev oilfields.

Output at the fields was suspended on Sunday due to power-distribution failures, tightening near-term supply expectations, according to CNBC. 

Optimism improved after U.S. President Donald Trump backed away from threats of imposing tariffs linked to his push to gain control over Greenland.

On Wednesday, Trump ruled out the use of military force and signaled that a negotiated framework with Denmark could be close, easing fears of a major rupture in transatlantic relations.

However, geopolitical risks in the Middle East continue to underpin prices. Trump stated he hoped there would be no further U.S. military action involving Iran, while cautioning that Washington would respond if Tehran restarted its nuclear program.

On the supply side, U.S. inventory data presented a mixed picture.

American Petroleum Institute (API) figures cited by market sources showed that U.S. crude oil stocks rose by 3.04m barrels in the week ended January 16.

Gasoline inventories increased by 6.21m barrels, while distillate stocks slipped by 33,000 barrels.

Despite inventory pressures, traders remain focused on geopolitical developments and supply disruptions, which continue to shape near-term oil price direction.

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