Oil prices rose on Tuesday, supported by a temporary halt in output at Kazakhstan’s major oil fields and expectations of stronger global economic growth that could lift fuel demand. Gains came as traders also monitored escalating tariff threats from U.S. President Donald Trump toward several European countries.
Brent crude futures settled 98 cents, or 1.5%, higher at $64.92 a barrel. The front-month U.S. West Texas Intermediate contract gained 90 cents, or 1.5%, to $60.34, while the more actively traded March contract rose $1.02, or 1.7%, to $60.36.
Prices were buoyed after Kazakhstan’s Tengiz and Korolev oil fields temporarily halted production following a power disruption, with the outage expected to last up to 10 days and reduce exports through the Caspian Pipeline Consortium. While the disruption is seen as temporary, the scale of the Tengiz field made the pause meaningful for near-term crude flows.
Additional support came from stronger-than-expected Chinese economic data, with fourth-quarter growth beating forecasts and refinery throughput rising in 2025. An improved global growth outlook, firmer diesel prices, and a weaker U.S. dollar also contributed to the upside by improving demand sentiment.
Offsetting some of the gains were concerns over renewed trade tensions after Trump threatened new tariffs on multiple European countries unless progress is made on Greenland-related negotiations. Analysts warned that escalating trade disputes could weigh on global growth and ultimately curb oil demand if implemented.