Summary
- US threatens tariffs on European states over Greenland
- China reported better-than-expected Q4 GDP data
- China reported higher crude oil output for 2025
- Brent, WTI prices edge lower
(Reuters) – Oil prices were steady on Tuesday as investors monitored U.S. President Donald Trump’s threats of higher tariffs on European states over his drive to acquire Greenland, while firmer global economic growth expectations and better-than-expected economic data from China gave a floor to prices.
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Brent futures for March shed 11 cents, or 0.17%, at $63.83 a barrel at 0918 GMT, while the U.S. West Texas Intermediate crude contract for February was down 49 cents, or 0.8%, at $58.95.
Trump’s tariff threats over Greenland will not have an immediate impact on the oil balance, said PVM analyst Tamas Varga, adding that prices gained support from an upward revision of this year’s global economic growth estimate by the International Monetary Fund and stronger diesel prices.
Fears of a renewed trade war escalated over the weekend after Trump said he would impose additional 10% levies from February 1 on goods imported from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, rising to 25% on June 1 if no deal on Greenland was reached.
CHINA DATA SUPPORTS OIL
The oil market is also finding some support from better-than-expected fourth-quarter Chinese gross domestic product data released on Monday, said IG market analyst Tony Sycamore.
“This resilience in the world’s top oil importer provided a lift to demand sentiment,” he said.
China’s economy grew 5.0% last year, the data showed, while China’s in 2025 also climbed, edging up 4.1% year-on-year, while crude oil output grew 1.5%, data from the world’s top oil importer showed on Monday.
Markets are also keeping a close eye on Venezuela’s oil sector after Trump said the U.S. would run the industry after its capture of Nicolas Maduro.
Vitol offered Venezuelan oil to Chinese buyers at discounts of about $5 per barrel to ICE Brent for April delivery, multiple trade sources said.
Reporting by Enes Tunagur in London; Additional reporting by Anushree Mukherjee in Bengaluru and Jeslyn Lerh in Singapore; Editing by Alexander Smith
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