Oil futures: Crude rebounds, Shandong set to ban sanctioned vessels

Quantum Commodity Intelligence - Crude oil futures Tuesday were climbing higher, overturning earlier losses following reports that a key Chinese port is set to ban sanctioned vessels.

Front-month Mar25 ICE Brent futures were trading at $77.21/b (1845 GMT) versus Monday's settle of $76.30/b and an intraday low of $75.91/b.

At the same time Feb25 NYMEX WTI was trading at $74.46/b, versus Monday's close of $73.56/b.

Reports that China's Shandong port was set to ban vessels sanctioned by the US were seen as a potential gamechanger for Russian and Iranian cargoes that are sold to regional refiners in the province, with limited options on outlets for the vast shadow fleets operated by Moscow and Tehran.

Prices have seen a boost in 2025 from the sharp drop in US and European temperatures, but renewed concerns over a tariff-led trade war had capped the upside earlier in the session.

Brent eased from three-month highs of $77.50/b after US President-elect Donald Trump denied a story published by the Washington Post that the incoming administration was considering tariffs that would only cover critical imports.

"The story in the Washington Post, quoting so-called anonymous sources, which don't exist, incorrectly states that my tariff policy will be pared back. That is wrong. The Washington Post knows it's wrong," Trump posted on the Truth Social site.

Weather

Meanwhile, the Associated Press reported that a huge swath of the US was blasted with snow and ice on Monday as the polar vortex dipped south over the weekend, keeping much of the country east of the Rockies in its grip.

While the winter storm will boost heating demand, mainly through natural gas and heating oil, it will likely hurt gasoline and jet fuel consumption.

Oil prices also stalled as the US Dollar Index consolidated above 108 points, impacting dollar-denominated import prices and weighing on global inflation targets.

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), was up to 2.6% on a yearly basis in December from 2.2% in November, with Europe's powerhouse set to be in for another tough economic year.