RoydadNaft –  Crude oil lacked clear direction on Tuesday as markets monitored U.S. President Donald Trump’s threats to impose higher tariffs on European countries over his desire to purchase Greenland. At the same time, a weaker U.S. dollar and better-than-expected economic data from China, the world’s largest oil importer, provided some support for prices.

According to Roydad Naft report, March Brent futures fluctuated, rising earlier in the session but by 07:40 GMT were down 16 cents (equivalent to 0.3 percent) at $63.78 per barrel. The U.S. West Texas Intermediate crude contract for February, which expires on Tuesday, rose 14 cents (equivalent to 0.2 percent) to $59.58.

The more actively traded March WTI contract fell 22 cents (equivalent to 0.4 percent) to $59.12. WTI contracts did not settle on Monday due to the U.S. Martin Luther King Jr. Day holiday.

ING commodities strategists said on Tuesday that a weaker U.S. dollar provided some support to oil and the broader commodities complex, as a weaker greenback makes dollar-denominated oil contracts cheaper for holders of other currencies.

Prices have held up relatively well amid a broader risk-off move in the markets, according to ING, following the re-emergence of trade tensions between the U.S. and Europe over Trump’s demands regarding Greenland.

Over the weekend, fears of a renewed trade war escalated after Trump announced he would impose additional 10% tariffs starting 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 is reached.

China Data Supports Oil

The oil market is also finding support from better-than-expected fourth-quarter Chinese gross domestic product data released on Monday. IG market analyst Tony Sycamore said this resilience in the world’s top oil importer provided a lift to demand sentiment.

The data showed that China’s economy grew 5.0% last year, meeting the government’s target by capturing a record share of global goods demand to offset weak domestic consumption. This strategy mitigated the impact of U.S. tariffs but is becoming increasingly difficult to sustain.

Government data showed that China’s refinery throughput in 2025 rose 4.1% year-on-year, while crude oil production grew 1.5%, both reaching all-time highs.

Markets are also closely watching Venezuela’s oil sector after Trump stated that the U.S. would take over the industry following the capture of President Nicolas Maduro.

Multiple trade sources said Vitol offered Venezuelan oil to Chinese buyers at discounts of about $5 per barrel relative to ICE Brent for April delivery.