DTN Oil Update
Oil Extends Rise on China Growth, Greenland Tensions
SECAUCUS, N.J. (DTN) -- Crude futures rose again Tuesday, Jan. 20, after a four-week rally, spurred by upbeat Chinese economic and oil consumption data.
China's economy expanded by 5% last year, meeting official growth targets as the world's second largest economy achieved record exports despite onerous U.S. tariffs, the government announced on Monday, Jan. 19.
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Data also showed that Chinese refinery throughput for oil climbed 4.1% in 2025, while domestic crude production rose by 1.5% to reach historical peaks.
U.S. President Donald Trump's push to acquire Greenland by slapping tariffs on opposed European allies also turned towards the West some of the geopolitical tensions focused until lately on mass protests in Iran.
Trump has framed the acquisition of the Arctic Island and semi-autonomous Danish territory as a non-negotiable requirement for U.S. security as he starts his second year of office. The president threatened at the weekend a 10% tariff on key European allies opposed to the idea, warning it would grow to 25% until the U.S. achieved its objective. Geopolitical tensions rose over the threat which Trump was expected to press on at this week's World Economic Forum in Davos, Switzerland.
NYMEX WTI crude for February delivery was up by $0.53, or nearly 1%, to $59.97 bbl. The ICE Brent crude contract for March rose by $0.32, or 0.5%, to $64.26 bbl.
Last week, WTI rose by 0.5% while Brent advanced 0.4%, marking a fourth straight week of increases.
Downstream, NYMEX ULSD futures for February delivery climbed by $0.0633 to $2.3009 gallon, while front-month RBOB moved up by $0.0112 to $1.7964 gallon.
The U.S. Dollar Index was down by 0.851 points to 98.35 against a basket of foreign currencies, adding to the rally in crude and other dollar-denominated commodities.