Oil prices rose on Tuesday after better-than-expected Chinese economic growth data boosted optimism about demand, while markets are also watching President Donald Trump's threats to increase US tariffs on European countries because of his desire to buy Greenland.
Brent crude futures rose 19 cents, or 0.3 percent, to $64.13 a barrel by 01:00 GMT. US West Texas Intermediate crude for February, which expires on Tuesday, also rose 25 cents, or 0.4 percent, from Friday's close to $59.69, Reuters reported.
The price of the March West Texas Intermediate crude contract, which is the most traded, also rose by 0.08 cents, or 0.13 percent, to $59.42.
West Texas Intermediate crude contracts were not settled on Monday due to the Martin Luther King Jr. Day holiday in the United States.
“West Texas Intermediate crude is trading slightly higher... supported by fourth-quarter 2025 GDP data released yesterday, which came in better than expected,” said Tony Sycamore, market analyst at IG, in a note. “This resilience from the world's largest oil importer has boosted demand sentiment.”
According to data released on Monday, the Chinese economy grew by 5.0 percent last year, achieving the government's goal by acquiring a record share of global demand for goods to offset weak domestic consumption. This strategy has mitigated the impact of US tariffs, but it is becoming increasingly difficult to maintain.
Government data released on Monday showed that Chinese refinery output rose 4.1 percent year-on-year in 2025, while crude oil production grew 1.5 percent. Both indicators recorded their highest levels ever.
Over the weekend, fears of a renewed trade war escalated after Trump stated that he would impose an additional 10 percent tariff from February 1 on goods imported from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain, rising to 25 percent on June 1 if no agreement is reached on Greenland.
“Contributing to the support of the oil price was the weakness of the US dollar, which resulted from markets selling the dollar in response to President Trump's continued threats to impose tariffs on Greenland,” Sycamore added.
The dollar fell 0.3 percent against major currencies. A weaker dollar makes dollar-denominated oil contracts cheaper for holders of other currencies.
Markets are closely monitoring the Venezuelan oil sector after Trump announced that the United States would take over the management of this sector following the arrest of President Nicolas Maduro.
Multiple trade sources reported that Vitol offered Venezuelan oil to Chinese buyers at discounts of up to about $5 a barrel compared to the price of Brent crude on the Intercontinental Exchange for April delivery.
China is also importing the largest amount of Russian Urals crude since 2023 at prices lower than Iranian oil prices, after India, the largest crude importer, sharply reduced its imports due to Western sanctions and ahead of the European Union's ban on products manufactured from Russian oil, according to trade sources and shipping data.
