By: Economy Middle east

Oil prices declined on Wednesday as an anticipated rise in U.S. crude stockpiles outweighed a temporary production halt at two significant fields in Kazakhstan and geopolitical tensions from U.S. tariff threats concerning its pursuit of Greenland.

Brent futures dropped by 70 cents, or 1.08 percent, settling at $64.22 a barrel, while the U.S. West Texas Intermediate crude contract fell 55 cents, or 0.91 percent, to $59.81 a barrel.

In the previous session, both contracts closed nearly $1 a barrel higher, marking a 1.5% increase, following Kazakhstan’s halt of output at the Tengiz and Korolev oilfields on Sunday due to power distribution challenges. Positive economic data from China also added to the upbeat sentiment.

According to analysts, the suspension of oil production at Tengiz, one of the largest oil fields globally, and Korolev is temporary. However, downward pressure from an anticipated increase in U.S. crude inventories and ongoing geopolitical tensions will continue.

U.S. President Donald Trump‘s pledge to impose new tariffs on European countries if a deal for U.S. control of Greenland is not achieved is intensifying pressure on the oil markets, as these tariffs could hinder economic growth.

On Tuesday, Trump stated that there is “no going back” on his objective to gain control of Greenland.

The American Petroleum Institute’s weekly inventory report is scheduled for release at 4:30 p.m. EST (21:30 GMT) on Wednesday, while the Energy Information Administration, part of the U.S. Department of Energy, will release its data at 12 p.m. EST (17:00 GMT) on Thursday, both postponed by a day because of a federal holiday on Monday.