US Tariffs Loom, Dollar Falls Oil Slightly Gains
Oil prices edged higher on Tuesday (January 20th) as investors monitored US President Donald Trump's tariff threats against European countries that resist his push to "acquire" Greenland. At the same time, hopes for stronger global economic growth and a weaker US dollar also kept oil prices from falling.
Brent crude futures rose 49 cents (0.77%) to $64.43/barrel at 12:53 GMT, while WTI crude gained 56 cents (0.94%) to $60/barrel. These gains came amid fears of a renewed trade war, after Trump threatened additional 10% tariffs starting February 1 on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and the UK—and potentially 25% starting June 1 if no agreement is reached on Greenland.
Despite the strong political headlines, analysts believe the impact of these tariffs will not immediately alter the oil supply-demand balance in the near term. Prices also received support from the IMF's upward revision of its global economic growth projections, coupled with stronger diesel prices—two factors that typically boost the energy sector.
From the Asian side, Chinese data also supported sentiment. China's fourth-quarter GDP was considered better than expected, while data showed the Chinese economy grew 5.0% last year. Refinery activity in 2025 also rose 4.1% year-on-year, and crude oil production grew 1.5%, leading the market to expect solid energy demand from the world's largest oil importer.
Furthermore, a weaker US dollar makes dollar-denominated oil cheaper for buyers in other currencies—further supporting prices. (yds)
Source: Newsmaker.id
