RoydadNaft –  Oil prices declined on Monday as markets digested ongoing geopolitical developments and broader global economic factors.

At 12:39 GMT, Brent crude was trading at $63.79 a barrel, down $0.40, or 0.62%. U.S. West Texas Intermediate (WTI) crude for February delivery fell $0.44, or approximately 0.74%, to $59.00 a barrel. That February contract is set to expire on Tuesday, and the more actively traded March contract was at $58.98, down $0.36 or 0.61%. 

Janiv Shah, an analyst at Rystad Energy, said the market’s focus has shifted to geopolitical tensions over Greenland and the potential implications for transatlantic trade, noting that any escalation in a U.S.–Europe dispute could affect global oil demand. 

European Union leaders are scheduled to meet in Brussels on Thursday for an emergency summit following U.S. comments about new tariffs on several EU countries related to discussions over the future of Greenland. Recently, U.S. political rhetoric suggested that European imports could face tariffs unless the United States is allowed to purchase Greenland, intensifying diplomatic tensions with Denmark’s Arctic territory. 

The market is also monitoring risks to Russian energy infrastructure and distillate supplies amid forecasts of colder weather across North America and Europe — factors that have contributed to uneasiness in the oil market. 

U.S. markets were closed on Monday in observance of Martin Luther King Jr. Day. 

In other news, Kazakh oil producer Tengizchevroil, led by Chevron, said it temporarily halted production at the Tengiz and Korolev oilfields as a precaution after an issue affected power distribution systems.