- US threatens tariffs on European states over Greenland
- China reports better-than-expected Q4 GDP data
- Oil supported by weaker dollar, IMF's revised global growth forecast, diesel prices
- China reports higher crude oil output for 2025
LONDON, Jan 20 (Reuters) - Oil prices were slightly higher 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 supported prices.
Brent futures gained 49 cents, or 0.77%, to $64.43 a barrel at 1253 GMT, while U.S. West Texas Intermediate crude was up 56 cents, or 0.94%, at $60.
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 are a mistake.
The tariff threats, however, will not have an immediate impact on the oil balance, said PVM analyst Tamas Varga, who added that prices had gained some 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 also is 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 and the country's in 2025 also climbed, edging up 4.1% on a year-over-year basis, data showed on Monday. China's crude oil output also grew 1.5%.
A sliding dollar also is supporting prices, as a weaker U.S. currency could boost oil demand by making dollar-denominated purchases cheaper.
"A weaker U.S. dollar provided some support to oil and the broader commodities complex," ING commodities strategists said on Tuesday.
Reporting by Enes Tunagur in London; Additional reporting by Anushree Mukherjee in Bengaluru and Jeslyn Lerh in Singapore; Editing by Alexander Smith, Joe Bavier and Paul Simao
Source: Reuters