Oil rises on Kazakh supply disruptions

NEW YORK:

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 US President Donald Trump's tariff threats against European states that oppose his push to acquire Greenland. Brent futures gained 98 cents, or 1.53%, to $64.92 a barrel at 1743 GMT, while US WTI crude was up $1.11, or 1.87%, at $60.55.

Kazakh oil producer Tengizchevroil, led by Chevron, said on Monday it had temporarily halted production at the Tengiz and Korolev oilfields after an issue affected power distribution systems. Tengiz could be halted for another seven to 10 days, cutting crude exports via the Caspian Pipeline Consortium, sources told Reuters on Tuesday.

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. 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 US currency could boost oil demand by making dollar-denominated purchases cheaper.