Markets track Trump’s Greenland tariff threats, China data and Venezuela supply risks
Global oil prices posted modest gains on Tuesday, supported by a weaker U.S. dollar, even as investors remained cautious over renewed trade tensions triggered by comments from U.S. President Donald Trump.
Brent crude futures edged up 15 cents, or 0.2 per cent, to $64.09 per barrel by 0430 GMT. In the United States, the February West Texas Intermediate (WTI) contract which expires on Tuesday rose 14 cents, or 0.2 per cent, to $59.58 per barrel.
The more actively traded WTI March contract added 6 cents, or 0.1 per cent, to $59.40. Oil markets did not settle on Monday due to the Martin Luther King Jr. Day holiday in the U.S.
Analysts say the softer dollar helped cushion oil prices against broader market uncertainty.
“A weaker U.S. dollar has offered some support to oil prices and the wider commodities market,” an ING commodities strategist said, noting that a softer greenback makes dollar-priced crude cheaper for buyers using other currencies.
Despite a general risk-off mood in global markets, oil prices have remained relatively resilient. ING attributed this to the re-emergence of trade tensions between the United States and Europe, following Trump’s renewed rhetoric over Greenland.
Over the weekend, concerns about a fresh trade conflict intensified after Trump warned of new tariffs on European imports. He said the U.S. would impose an additional 10 per cent levy from February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, rising to 25 per cent by June 1 if no agreement was reached over Greenland.
Oil markets are also drawing support from stronger-than-expected economic data from China, the world’s largest crude importer.
According to IG market analyst Tony Sycamore, better fourth-quarter growth figures from China helped lift demand sentiment. “This resilience in the world’s top oil importer has provided support for the market,” he said.
China’s economy expanded 5.0 per cent in 2025, meeting the government’s growth target. The country relied heavily on exports to counter weak domestic consumption, a strategy that has helped blunt the impact of U.S. tariffs but may be difficult to sustain.
Government data released on Monday showed China’s refinery throughput rose 4.1 per cent year-on-year in 2025, while crude oil production increased by 1.5 per cent, both hitting record highs.
Meanwhile, investors 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.
In response, trading giant Vitol has reportedly offered Venezuelan crude to Chinese buyers at discounts of about $5 per barrel to ICE Brent for April delivery, according to multiple trade sources.
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