Oil rises on Kazakh supply disruptions, firmer economic growth; US tariff threats in focus

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 gained 98 cents, or 1.53%, to $64.92 a barrel at 12:43 p.m. ET (1743 GMT), while U.S. West Texas Intermediate crude was up $1.11, or 1.87%, at $60.55.

Kazakh oil producer Tengizchevroil, led by Chevron (CVX.N), 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.

"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.