Oil prices experienced an uptick on Tuesday, driven by stronger-than-anticipated economic growth figures from China, which bolstered optimism regarding demand. Concurrently, market participants were attentive to President Donald Trump’s threats to impose higher U.S. tariffs on European countries, linked to his interest in acquiring Greenland. Brent futures increased by 19 cents, representing a 0.3% rise, reaching $64.13 per barrel as of 0100. The U.S. West Texas Intermediate crude contract for February, set to expire on Tuesday, increased by 25 cents, or 0.4%, from Friday’s close, reaching $59.69.
The more actively traded WTI March contract increased by 0.08 cents, or 0.13%, reaching a price of $59.42. WTI contracts remained unsettled on Monday as a result of the U.S. Martin Luther King Jr. Day holiday. WTI Crude Oil is experiencing a slight uptick, bolstered by the more favorable-than-anticipated Q4 2025 GDP figures released from China, as noted by market analyst Tony Sycamore. The robustness exhibited by the leading oil importer globally has bolstered demand sentiment. China’s economy experienced a growth rate of 5.0% last year, as reported in data released on Monday, successfully aligning with the government’s target by capturing a historic share of global demand for goods to counterbalance subdued domestic consumption. The strategy mitigated the effects of U.S. tariffs, yet it is becoming progressively difficult to maintain. In 2025, China’s refinery throughput increased by 4.1% compared to the previous year, while crude oil production saw a growth of 1.5%, according to data released by the government on Monday. Both reached unprecedented levels.
Over the weekend, concerns regarding a potential resurgence of trade tensions intensified following Trump’s announcement of a forthcoming 10% tariff on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain, effective February 1. This rate is set to escalate to 25% on June 1 should negotiations concerning Greenland fail to yield an agreement. Contributing to the positive momentum, the depreciation of the dollar—triggered by market reactions to President Trump’s persistent tariff threats concerning Greenland—provided a favorable backdrop for the commodity, Sycamore noted. The dollar experienced a decline of 0.3% relative to its counterparts. A depreciated greenback results in dollar-denominated oil contracts becoming more affordable for holders of alternative currencies. Markets are closely monitoring Venezuela’s oil sector in light of Trump’s assertion that the U.S. would take control of the industry following the capture of President Nicolas Maduro.
Vitol has presented Venezuelan oil to Chinese purchasers at discounts approximating $5 per barrel relative to ICE Brent for April delivery, according to various trade sources. China is currently importing the highest volume of Russian Urals crude since 2023, with prices falling below those of Iranian oil. This shift follows a significant reduction in imports by India, the leading buyer, due to Western sanctions, and in anticipation of a European Union ban on products derived from Russian oil, as indicated by trade sources and shipping data.