Oil prices edged higher on Tuesday after stronger-than-expected economic growth data from China improved the outlook for energy demand. Markets were also closely monitoring escalating trade tensions after U.S. President Donald Trump threatened additional tariffs on European countries tied to his push to acquire Greenland.
Brent crude futures rose 19 cents, or 0.3%, to $64.13 a barrel by 01:00 GMT. U.S. West Texas Intermediate (WTI) crude for February delivery—which expires later on Tuesday—climbed 25 cents, or 0.4%, to $59.69 from Friday’s close. The more actively traded March WTI contract gained 0.13% to $59.42. WTI did not settle on Monday due to the U.S. Martin Luther King Jr. Day holiday.
“WTI crude is trading modestly higher, supported by better-than-expected fourth-quarter GDP data from China,” said Tony Sycamore, market analyst at IG. He added that the resilience of the world’s largest oil importer helped lift demand sentiment.
China’s economy expanded by 5.0% last year, according to data released Monday, meeting the government’s growth target. The country offset weak domestic consumption by capturing a record share of global goods demand—a strategy that helped cushion the impact of U.S. tariffs but may prove difficult to maintain.
Government figures also showed China’s refinery throughput rose 4.1% year-on-year in 2025, while crude oil production increased 1.5%. Both reached record highs.
Trade war concerns intensified over the weekend after Trump said the United States would impose additional 10% tariffs from February 1 on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain—rising to 25% by June 1 if no agreement on Greenland is reached.
Adding to oil’s gains, the U.S. dollar weakened after investors sold the greenback in response to Trump’s tariff threats. The dollar was down 0.3% against its peers, making dollar-denominated commodities more affordable for holders of other currencies.
Markets were also watching developments in Venezuela’s oil sector after Trump said the U.S. would oversee the industry following the capture of President Nicolas Maduro. Trading sources said Vitol offered Venezuelan crude to Chinese buyers at discounts of about $5 per barrel to ICE Brent for April delivery.
Meanwhile, China is importing its largest volumes of Russian Urals crude since 2023 at prices below Iranian oil, according to trade sources and shipping data. The shift comes after India sharply reduced purchases due to Western sanctions and ahead of a European Union ban on products refined from Russian oil.
