Crude oil futures fell sharply on Monday amid reduced fears over Iran’s regional actions and renewed speculation about U.S. intentions in Greenland, triggering a shift in investor sentiment across commodity markets. The decline was led by a drop in CL=F contracts, with energy ETFs like USO and major producers including XOM reflecting broader market adjustments.
- CL=F futures dropped 4.3% to $72.10 per barrel on reduced Middle East risk.
- USO ETF declined 3.9%, reflecting broad-based commodity selloff.
- XOM shares fell 2.6% amid sector-wide sentiment shift.
- Trump’s Greenland comments reignited Arctic geopolitics speculation.
- Open interest in WTI futures declined, indicating reduced trader positioning.
- Market focus now shifts to upcoming U.S. inventory data for directional cues.
Global crude prices declined following a notable easing of tensions between Western powers and Iran, which had previously driven up premiums due to supply risk concerns. As diplomatic channels reopened and military posturing subsided in the Persian Gulf, demand for safe-haven assets waned, contributing to pressure on oil markets. Concurrently, former U.S. President Donald Trump’s public remarks suggesting potential interest in acquiring Greenland added new layers of uncertainty around Arctic resource sovereignty, impacting long-term energy outlooks. The front-month West Texas Intermediate (WTI) crude contract, tracked by CL=F, dropped 4.3% to settle at $72.10 per barrel—the lowest level since late November 2025. This marked the largest single-day decline in three weeks and reflected a broader pullback in risk appetite. The decline extended to exchange-traded funds linked to oil, with USO shedding 3.9% in value. Major integrated oil companies such as ExxonMobil (XOM) saw shares fall 2.6%, mirroring sector-wide profit-taking. Market analysts note that while reduced conflict in the Middle East is positive for supply stability, the speculative narrative around Greenland—home to vast untapped mineral and hydrocarbon reserves—has introduced fresh volatility. Investors are now reassessing the long-term strategic value of Arctic energy projects, especially those requiring significant capital investment and international cooperation. Energy traders also highlighted declining open interest in near-term oil futures contracts, signaling reduced positioning ahead of upcoming U.S. Energy Information Administration data releases expected later this week.