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West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $59.85 during the early European trading hours on Friday. The WTI price edges higher amid a weaker US Dollar (USD) and risk-on mood in wider markets. 

The USD weakens across the board after US President Donald Trump dropped tariff threats and ruled out seizing Greenland by force, helping calm jittery markets. Trump added that the US and the North Atlantic Treaty Organization (NATO) had formed the framework of a future deal with respect to Greenland.

“US dollar weakness is offering support to prices,” said Warren Patterson, head of commodities strategy at ING Groep NV. “The outlook for the market remains bearish, but the raft of geopolitical and supply risks means the outlook for lower prices is taking longer to materialize.”

US crude oil inventories rose last week, which might drag the WTI price lower. According to the US Energy Information Administration (EIA) weekly report, crude oil stockpiles in the US for the week ending January 16 climbed by 3.602 million barrels, compared to a rise of 3.391 million barrels in the previous week. The market consensus estimated that stocks would increase by 1.1 million barrels.

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