Oil prices edged lower on Monday as tensions with Iran showed signs of cooling and traders assessed the impact of President Donald Trump's threat to annex Greenland. Brent crude slid below $64 per barrel.
Over the weekend, there was no significant escalation of Iran-related risks to oil supplies, a concern that had been weighing on markets. Meanwhile, Trump's announcement of tariffs on some European nations over Greenland sent ripples through global markets.
European stocks fell, while gold and silver reached record highs as investors sought safe-haven assets. The premium on Brent's nearest contract over futures for the following month has roughly doubled since the start of the year to about 70 cents a barrel, indicating short-term market tightness.
"Despite the pressure on flat price, the prompt ICE Brent timespread remains firm, suggesting some tightness in the spot physical market," ING Groep NV stated in a report. Trading volumes on Monday may be lower than usual due to a holiday in the United States.
Iran's Supreme Leader Ayatollah Ali Khamenei acknowledged for the first time that several thousand people died in recent anti-government demonstrations. While accusing the United States and Israel of aiding the killings, he said Iran does not intend to push the country toward war.
Oil has faced pressure in recent quarters from concerns about supply outpacing demand. The International Energy Agency forecasts a major overhang of more than 3.8 million barrels per day this year. However, supply disruption remains a threat; Kazakhstan's largest oil producer has temporarily shut production at the Tengiz and Korolev fields as a precaution after two fires at power generators.