By Nicole Jao
NEW YORK (Reuters) -Oil prices settled up on Tuesday, bouncing back from multi-week lows, after the White House reaffirmed U.S. President Donald Trump's plans to issue tariffs on Canadian and Mexican imports this week.
Fears of weaker demand linked to soft economic data from China and rising temperatures elsewhere capped gains.
Brent crude oil futures settled up 41 cents, or 0.53%, at $77.49 per barrel. U.S. West Texas Intermediate crude futures were up 60 cents, or 0.82%, at $73.77.
Brent settled on Monday at its lowest since Jan. 9, while WTI hit its lowest since Jan. 2.
The White House said Trump still plans to issue 25% tariffs on Canada and Mexico on Saturday while weighing fresh tariffs on China.
"Trump's comments on tariffs kept the market on edge," said Phil Flynn, analyst at Price Futures Group. The tariffs could disrupt the flow of energy products across the U.S. borders with Canada and Mexico.
In Libya, local protesters prevented crude oil loadings on Tuesday at Es Sider and Ras Lanuf ports, putting about 450,000 barrels per day of exports at risk.
However, fears of supply disruption eased after Libya's state-run National Oil Corp said export activity was running normally after it held talks with protesters.
"The market priced in the risk of Libyan oil supply disruption before it became clear that flows for now are not disrupted, with the risk premium evaporating again," UBS commodities analyst Giovanni Staunovo said.
"There remains a risk of new disruptions down the road," he added.
China, the world's largest crude oil importer, reported on Monday an unexpected contraction in January manufacturing activity, pressuring oil prices.
"The general tone of caution in the risk environment, coupled with weaker Chinese PMI numbers that cast further doubt on China's oil demand outlook, may serve as a drag on oil prices," IG analyst Yeap Jun Rong said.
China's crude oil demand is also expected to be hit by the latest U.S. sanctions on Russian oil trade.
FGE analysts see refineries in Shandong losing up to 1 million barrels per day of crude supply in the near term amid a ban imposed by the Shandong Port Group on U.S.-sanctioned tankers.
Several independent refineries in China have halted operations, or plan to do so, for indefinite maintenance periods, sources told Reuters, as new Chinese tariff and tax policies plunge plants deeper into losses.
In the U.S., weather forecasts are for warmer-than-normal temperatures through this week, which are also weighing on demand for heating fuels after extreme cold sparked a natural gas and diesel rally in prior sessions.