Oil rises on Kazakh supply disruptions, upbeat economic data; Greenland in focus

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US threatens tariffs on European states over Greenland

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China reports better-than-expected fourth-quarter GDP data

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Kazakhstan's Tengizchevroil halts production

By Nicole Jao

NEW YORK, Jan 20 (Reuters) - Oil prices rose on Tuesday on the temporary suspension of output at Kazakhstan's oil fields and expectations of firmer global economic growth that could drive fuel demand. Investors continued to monitor U.S. President Donald ?Trump's tariff threats against European states that oppose his push to acquire Greenland.

Brent futures settled 98 cents, or 1.53%, higher at $64.92 a barrel. The U.S. ?West Texas Intermediate crude contract for February, which expires on Tuesday, gained 90 cents, or 1.51%, at $60.34.

The more ?actively traded WTI March contract rose $1.02, or 1.72%, to $60.36. Kazakh oil producer Tengizchevroil, ?led by Chevron (CVX), said on Monday ?it had temporarily halted production at the Tengiz and Korolev oilfields after an issue affected power distribution systems.

TENGIZ FIELD COULD BE HALTED 7-10 ?DAYS Tengiz could be halted for another seven to 10 ?days, cutting crude exports via the Caspian Pipeline Consortium, sources told Reuters on Tuesday.

"Tengiz is amongst the largest fields in the world and so the outage is certainly disruptive for crude ?flows," said Ajay Parmar, director of energy and refining ?at ICIS. "But this disruption ?does look to be temporary, and so if the tariffs rhetoric continues, we expect prices to fall back," he said.

The oil market also drew support from better-than-expected fourth-quarter Chinese gross domestic product ?data released on Monday, said IG market analyst Tony Sycamore.

"This resilience in the world's top oil importer provided a lift to demand sentiment," he said. China's economy grew by 5% last year and the country's refinery throughput in 2025 climbed 4.1% on a year-over-year basis, data showed on Monday. China's crude oil output also grew 1.5%. Prices also gained on an upward revision of this year's global economic growth estimate by the International Monetary ?Fund ?as well as stronger diesel prices, said PVM analyst Tamas Varga. A sliding dollar has also supported prices, as a weaker U.S. currency could boost oil demand by making dollar-denominated purchases cheaper.

TRUMP TARIFF THREATS ?IN FOCUS Fears of a renewed trade war escalated over the weekend after Trump said he would impose additional 10% levies from February 1 on goods imported from EU members Denmark, Finland, France, Germany, Sweden and the Netherlands, as well as Britain and Norway, rising to 25% on June 1 if no deal on Greenland was reached.

Trump's tariff threats have a negative bearing on crude prices as the levies could lead to lower global economic growth and therefore reduce oil demand growth, said ?Parmar of ICIS. European Commission President Ursula von der Leyen said on Tuesday that the bloc's executive arm is working on a package to support Arctic security and that the tariffs are a mistake.