05:09 AM EST, 01/28/2025 (MT Newswires) -- Crude oil prices recovered early on Tuesday though remained near two-week lows amid weak Chinese economic data and the impact of sanctions on the demand outlook.

Brent crude gained 0.4% to US$77.39/barrel and West Texas Intermediate crude rose 0.5% to US$73.51/b at last look.

China on Monday reported an unexpected drop in manufacturing activity in January, adding to global oil demand growth concerns, Reuters said in a Tuesday report.

"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," Reuters quoted IG analyst Yeap Jun Rong as saying.

Crude demand in China is also expected to be affected by U.S. sanctions on Russian oil, with refineries in Shandong forecast to lose up to 1 million barrels per day of supply in the near term due to a ban, the report said.

Independent refineries in China have halted or are planning to halt operations for maintenance amid new Chinese tariff and tax policies, Reuters reported, citing unnamed sources.

Caution is likely to remain among market participants as the Feb. 1 deadline for U.S. tariffs approaches, analysts said in the report.