Oil prices edged higher on Tuesday, supported by a weaker U.S. dollar, as markets weighed renewed trade tensions sparked by President Donald Trump’s threats of higher tariffs on European countries linked to his push for the purchase of Greenland.
Brent crude futures rose 15 cents, or 0.2 per cent, to $64.09 a barrel by 0430 GMT. U.S. West Texas Intermediate (WTI) crude for February delivery, which expires on Tuesday, gained 14 cents, or 0.2 per cent, to $59.58 a barrel. The more actively traded March WTI contract added 6 cents, or 0.1 per cent, to $59.40. WTI contracts did not settle on Monday due to the U.S. Martin Luther King Jr. Day holiday.
Analysts said the softer dollar provided support for oil prices, making dollar-denominated commodities cheaper for holders of other currencies. An ING commodities strategist noted that oil prices had remained relatively resilient despite a broader risk-off mood in global markets, following the re-emergence of trade tensions between the United States and Europe.
Concerns over a renewed trade war intensified over the weekend after Trump said the U.S. would impose an additional 10 per cent tariff from February 1 on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain. He warned that the levies could rise to 25 per cent from June 1 if no agreement was reached on Greenland.
Oil prices also drew support from stronger-than-expected Chinese economic data. IG market analyst Tony Sycamore said better fourth-quarter gross domestic product figures from China helped lift demand sentiment, noting the resilience of the world’s largest oil importer.
China’s economy grew by 5.0 per cent in 2025, meeting the government’s target, driven largely by exports that offset weak domestic consumption. Government data released on Monday showed refinery throughput rose 4.1 per cent year on year, while crude oil output increased by 1.5 per cent, with both reaching record highs.
Meanwhile, markets are closely monitoring developments in Venezuela’s oil sector after Trump said the United States would take control of the industry following the capture of President Nicolas Maduro. Separately, trading sources said Vitol had offered Venezuelan crude to Chinese buyers at discounts of about $5 per barrel to ICE Brent for April delivery.
