Oil prices steadied after a weekly decline as traders weighed President-elect Donald Trump’s controversial remarks about reasserting U.S. control over the Panama Canal.

Brent crude hovered around $73 a barrel, following a 2.1% drop last week, while West Texas Intermediate crude dipped below $70 a barrel. Trump claimed that the crucial maritime route, which facilitates approximately 2% of global oil supplies, imposes “exorbitant” fees—a claim swiftly dismissed by Panama’s president.

Trump’s comments on the Panama Canal come on the heels of his threats to impose tariffs on Canada, Mexico, China, and the European Union unless they boost imports of American oil and natural gas. These bold declarations have already disrupted global policy dynamics, mere weeks before his inauguration.

Despite the geopolitical noise, oil prices have remained trapped within a narrow range since mid-October. Sluggish demand in China and expectations of abundant supply have weighed on market sentiment, limiting any significant price recovery.

Vandana Hari, founder of Singapore-based Vanda Insights, told Bloomberg, “Trump’s threats and posturing on the global stage are little more than empty rhetoric for the oil markets at this point. With subdued trading activity and a lack of robust recovery signals, I anticipate oil prices will continue to trade sideways through the end of the year.”

Meanwhile, hedge funds are increasingly optimistic about the outlook for both Brent and West Texas Intermediate. Net long positions in U.S. crude surged last week to their highest levels in a year, buoyed by a recent price rally. The rally was fueled by the possibility of additional Western sanctions, which could tighten supplies of Russian and Iranian oil.