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23-01-2026
LONDON: prices were slightly higher on Tuesday as investors monitored US President Donald Trump’s tariff threats against European states opposing his push to acquire Greenland, while firmer global economic growth expectations and a weaker US dollar supported prices.
Brent futures gained 49 cents, or 0.77%, to $64.43 a barrel at 1253 GMT, while US 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.
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 US currency could boost oil demand by making dollar-denominated purchases cheaper.
“A weaker US dollar provided some support to oil and the broader commodities complex,” ING commodities strategists said on Tuesday.
Earlier, President Donald Trump on Saturday vowed to implement a wave of increasing tariffs on European allies until the United States is allowed to buy Greenland, escalating a row over the future of Denmark’s vast Arctic island.
In a post on Truth Social, Trump said additional 10% import tariffs would take effect on February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Great Britain, all already subject to tariffs imposed by Trump.
Those tariffs would increase to 25% on June 1 and would continue until a deal was reached for the US to purchase Greenland, Trump wrote.
Trump has repeatedly insisted he will settle for nothing less than ownership of Greenland, an autonomous territory of Denmark. Leaders of both Denmark and Greenland have insisted the island is not for sale and does not want to be part of the United States.
A media poll of US residents this week found that less than one in five respondents support the idea of acquiring Greenland.
Trump wants Greenland for security, minerals
The president has repeatedly said Greenland is vital to US security because of its strategic location and large mineral deposits, and has not ruled out using force to take it. European nations this week sent military personnel to the island at Denmark’s request.
“These Countries, who are playing this very dangerous game, have put a level of risk in play that is not tenable or sustainable,” Trump wrote. (Int’l Monitoring Desk)
