Oil prices rise slightly but remain near two-week lows

Oil prices edged higher on Tuesday but stayed near two-week lows as weak Chinese economic data and warmer U.S. temperatures dampened the demand outlook.

Brent crude futures rose by 35 cents, or 0.45%, to $77.43 per barrel by 0930 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 30 cents, or 0.41%, to $73.47.

On Monday, Brent crude settled at its lowest price since January 9, while WTI hit its lowest level since January 2. Supporting prices was a disruption at Libya's Es Sidra port, which affected oil loading operations.

China, the world’s largest crude importer, reported an unexpected contraction in January’s manufacturing activity, raising concerns about global crude demand. Additionally, U.S. sanctions on Russian oil trade are expected to reduce crude supply to refineries in Shandong by up to 1 million barrels per day, according to FGE analysts.

In the U.S., forecasts for warmer-than-normal temperatures through the week weighed on heating fuel demand, following earlier spikes in natural gas and diesel prices due to extreme cold. Broader financial markets were also under pressure from growing interest in a low-cost artificial intelligence model recently launched by China’s DeepSeek.