Oil prices edged higher on Tuesday after stronger-than-expected economic growth data from China buoyed demand expectations, even as markets remained focused on escalating United States tariff threats tied to President Donald Trump’s push to buy Greenland.
By 3 pm AEDT (4 am GMT), Brent crude futures were up 7 cents, or 0.1%, at $64.01 a barrel. U.S. West Texas Intermediate crude for March delivery gained 3 cents, or 0.1%, to $59.37 a barrel, after not settling on Monday due to the Martin Luther King Jr. Day holiday in the United States.
Investor sentiment was supported by fresh data showing China’s economy expanded 5% last year, meeting Beijing’s official growth target, despite recording the slowest quarterly growth since 2023.
The result was underpinned by China capturing a record share of global goods demand to offset weak domestic consumption, a strategy that helped blunt the impact of U.S. tariffs but is seen as increasingly difficult to sustain.
China’s energy data also pointed to resilient demand. Government figures released on Monday showed refinery throughput rose 4.1% year on year in 2025, while crude oil output increased 1.5%, with both reaching record highs.
However, oil markets remain on edge after renewed fears of a trade war flared over the weekend. Trump said he would impose additional 10% tariffs from 1 February on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, with levies rising to 25% on 1 June if no agreement is reached over Greenland.
The U.S. dollar slipped 0.3% against a basket of major currencies, lending some support to oil prices by making dollar-denominated commodities cheaper for non-U.S. buyers.
Markets are also closely monitoring developments in Venezuela’s oil sector after Trump said the United States would run the industry following the capture of President Nicolás Maduro, adding another layer of geopolitical uncertainty to global energy markets.
