Brent crude futures settled up 98 cents, or 1.53%, at $64.92 a barrel. U.S. West Texas Intermediate (WTI) crude for February delivery, which expired on Tuesday, rose 90 cents, or 1.51%, to $60.34, while the more actively traded March WTI contract climbed $1.02, or 1.72%, to $60.36.
The market reaction followed an announcement by Tengizchevroil, the Chevron-led operator of Kazakhstan’s Tengiz and Korolev oilfields, that production had been temporarily halted due to a problem affecting power distribution systems. Sources told Reuters that the Tengiz field—one of the largest oilfields globally—could remain offline for another seven to ten days, potentially curbing crude exports via the Caspian Pipeline Consortium.
“The Tengiz outage is certainly disruptive for crude flows given the scale of the field,” said Ajay Parmar, director of energy and refining at ICIS. “However, the interruption appears temporary, and if trade-related rhetoric continues to escalate, prices could retreat.”
Additional support for oil prices came from encouraging economic data out of China, the world’s largest crude importer. Fourth-quarter gross domestic product figures released on Monday exceeded expectations, reinforcing optimism around fuel demand. China’s economy expanded by 5% last year, while refinery throughput rose 4.1% year-on-year in 2025. The country’s crude oil output also increased by 1.5%, according to official data.
“This resilience in the world’s top oil importer provided a lift to demand sentiment,” said Tony Sycamore, an analyst at IG.
Global macroeconomic factors also played a role. The International Monetary Fund recently revised up its forecast for global economic growth this year, while stronger diesel prices and a weaker U.S. dollar added further support. A softer dollar tends to make oil more affordable for buyers using other currencies, potentially boosting demand.
Despite the positive signals, investor attention remained firmly on escalating trade risks. Over the weekend, U.S. President Donald Trump said he would impose an additional 10% tariff from February 1 on imports from several European countries—including Denmark, Finland, France, Germany, Sweden and the Netherlands—as well as Britain and Norway. He warned the levies could rise to 25% by June 1 if no agreement was reached over Greenland.
Such measures could weigh on oil prices by undermining global economic growth and, by extension, energy demand, analysts cautioned. European Commission President Ursula von der Leyen said on Tuesday that the EU is preparing a package to support Arctic security and described the proposed tariffs as a mistake.
For now, the oil market is balancing near-term supply disruptions and growth optimism against the longer-term risk that renewed trade tensions could erode demand.