Oil prices went up slightly on Wednesday morning in the international market, supported by a weaker dollar. However, concerns about a potential US economic slowdown and the effects of tariffs on global growth limited the rise.
Brent crude oil futures increased by 27 cents, or 0.39%, to $69.83 per barrel at 0110 GMT. Meanwhile, US West Texas Intermediate crude futures rose by 29 cents, or 0.44%, to $66.54 per barrel.
Even with the uncertain economic outlook, oil prices stayed steady, showing that demand for crude remains strong in the short term, according to Daniel Hynes, a senior commodity strategist at ANZ.
The dollar index (.DXY), which fell 0.5 per cent to fresh 2025 lows on Tuesday, boosted oil prices by making crude less expensive for buyers holding other currencies.
But US stock prices, which also influence the oil market, fell again on Tuesday, adding to the biggest selloff in months, with investors rattled over increased tariffs on imports and souring consumer sentiment.
Trump’s protectionist policies have shaken global markets. He has imposed, then delayed tariffs on major oil suppliers Canada and Mexico, while also raising duties on China, prompting retaliatory measures.
Over the weekend, Trump said a “period of transition” was likely and declined to rule out a US recession.
In supply, US crude oil production is poised to set a larger record this year than prior estimates, at an average 13.61 million barrels per day, the US Energy Information Administration said on Tuesday.
Investors are waiting for US inflation data due on Wednesday for clues on the path of interest rates. They also are closely monitoring OPEC+ plans. The producer group has announced plans to increase output in April.
In the US, crude oil stockpiles rose by 4.2 million barrels in the week ended March 7, market sources said, citing American Petroleum Institute figures on Tuesday.
