Oil Rises Slightly, Chinese Data Boosts Optimism
Oil prices rose slightly in trading on Tuesday (January 20) after better-than-expected Chinese economic data boosted demand optimism. Brent crude rose 19 cents (0.3%) to $64.13/barrel, while February WTI—which expires today—rose 25 cents (0.4%) to $59.69/barrel. The more active March WTI contract also edged higher to around $59.42/barrel.
This strengthening was driven by news from China, the world's largest oil importer. The Chinese economy reportedly grew 5.0% through 2025, meeting the government's target. Refinery activity also increased, with refinery throughput rising 4.1% and crude oil production rising 1.5%, both at record levels.
However, the market remains on the brakes as the Greenland issue persists. US President Donald Trump has threatened additional 10% tariffs starting February 1 on goods from eight European countries, potentially increasing to 25% on June 1 if no deal is reached. These tensions have raised concerns about a new trade war that could depress global growth and energy demand.
Another factor supporting oil is the weakening dollar. The dollar fell about 0.3% against major currencies, making dollar-denominated oil cheaper for buyers outside the US. This typically provides additional support for oil prices.
Beyond that, the market is also combining supply dynamics and trade flows. Venezuela has been brought up again after Trump spoke about US plans to manage its oil sector, while Venezuelan oil is reportedly being offered to Chinese buyers at a discount of around $5/barrel for April delivery. At the same time, China has also increased purchases of Russian Urals oil, influencing changes in Indian demand due to factors and sanctions. (asd)
Source: Newsmaker.id
