Oil steadies as investors assess US tariff threats over Greenland

LONDON: Oil prices were steady on Tuesday as investors monitored U.S. President Donald Trump’s tariff threats against European states opposing his push to acquire Greenland, while firmer global economic growth expectations and a weaker U.S. dollar gave a floor to prices.

Brent futures for March gained 23 cents, or 0.36%, at $64.17 a barrel at 1126 GMT, while the U.S. West Texas Intermediate crude was up 13 cents, or 0.2%, at $59.57.

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.

European Commission President Ursula von der Leyen said on Tuesday that the bloc’s executive arm is working on a package to support Arctic security and warned that the tariffs are a mistake.

The tariff threats, however, 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 as well as stronger diesel prices.

CHINA DATA, WEAKER DOLLAR SUPPORT 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 refinery throughput in 2025 also climbed, edging up 4.1% year-on-year, while crude oil output grew 1.5%, data showed on Monday.

A sliding dollar was also supporting prices, as a weaker U.S. currency could boost oil demand by making dollar-denominated purchases cheaper.