Brent and WTI climb
China39;s Shandong Port blacklists U.S.sanctioned oil vessels, traders say
Middle East market strength provides support
Economic data undermine demand hopes

Jan 7 Reuters Oil prices climbed on Tuesday reversing earlier declines, as fears of tighter Russian and Iranian supply due to escalating Western sanctions lent support.

Brent futures were up 61 cents, or 0.80, to 76.91 a barrel at 1119 GMT, while U.S. West Texas Intermediate WTI crude climbed 46 cents, or 0.63, to 74.02.

It seems market participants have started to price in some small supply disruption risks on Iranian crude exports to China, said UBS analyst Giovanni Staunovo.

Worries over supply tightness amid sanctions, has translated into better demand for Middle Eastern oil, reflected in a hike in Saudi Arabia39;s February oil prices to Asia, the first such increase in three months.

Also in China, Shandong Port Group issued a notice on Monday banning U.S. sanctioned oil vessels from its network of ports, according to three traders, potentially restricting blacklisted vessels from major energy terminals on China39;s east coast.

Shandong Port Group oversees major ports on China39;s east coast, including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil.

Meanwhile, cold weather in the U.S. and Europe has boosted heating oil demand, providing further support for prices.

However, oil price gains were capped by global economic data.

Euro zone inflation…