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Oil Falls as Trump Softens Greenland Rhetoric, EIA Shows Larger U.S. Build

Easing of tariff and Iran risks from the president shifted attention to rising U.S. inventories plus a projected 2026 surplus.

Overview

  • EIA data showed U.S. crude stocks up 3.602 million barrels versus 1.131 million expected, with gasoline up 5.977 million and distillates up 3.349 million as refinery utilization fell 2.0%.
  • WTI slipped back to roughly $59–$60 and Brent to about $64 as the risk premium faded after the president outlined a Greenland framework and dialed back hawkish language on Iran.
  • The API’s private survey a day earlier pointed to a 3.04 million‑barrel crude build and a 6.21 million‑barrel gasoline increase, reinforcing supply concerns.
  • Kazakhstan’s Tengiz and Korolev fields remain shut after power‑system fires, with industry sources indicating a 7–10 day interruption viewed as temporary by traders.
  • The IEA still foresees a sizable 2026 surplus near 3.7 million barrels per day, which is curbing the durability of gains despite supportive Chinese demand signals.