Oil prices edged higher on Tuesday, supported by a weaker U.S. dollar, as markets closely monitored President Donald Trump’s threat to impose tariffs on several European countries over his bid to purchase Greenland.
Brent crude futures rose 15 cents, or 0.2%, to $64.09 a barrel at 0430 GMT. U.S. West Texas Intermediate (WTI) crude for February delivery, which expires Tuesday, increased 14 cents, or 0.2%, to $59.58, while the more actively traded March contract added 6 cents, or 0.1%, to $59.40. WTI contracts did not settle on Monday due to the Martin Luther King Jr. Day holiday in the U.S.
“A weaker U.S. dollar provided some support to oil and the broader commodities complex,” said ING commodities strategists. A softer dollar makes dollar-denominated oil contracts cheaper for holders of other currencies, supporting demand.
Prices have remained relatively stable despite broader risk-off sentiment in global markets, fueled by renewed trade tensions between the U.S. and Europe over Trump’s Greenland demands. Over the weekend, fears of a renewed trade war intensified after Trump announced plans to impose a 10% tariff from February 1 on goods imported from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain, with the rate potentially rising to 25% on June 1 if no agreement on Greenland is reached.
