Oil prices edged up on Wednesday, supported by a weaker dollar, but gains were capped by mounting fears of a US economic slowdown and the impact of tariffs on global economic growth.
Brent futures rose 37 cents, or 0.53%, to $69.93 a barrel at 0951 GMT, while US West Texas Intermediate crude futures gained 37 cents, or 0.53%, to $66.62 a barrel.
Crude has been supported in recent days by a weaker US dollar and the Energy Information Administration (EIA) moving away from earlier calls of strongly oversupplied oil markets this year, UBS analyst Giovanni Staunovo.
The dollar index, which fell 0.5% to fresh 2025 lows on Tuesday, boosted oil prices by making crude less expensive for buyers holding other currencies, Reuters reported.
"Easing dollar counters the bearish bias of global economic slowdown, although this seems short-lived," said Priyanka Sachdeva, senior market analyst at Phillip Nova.
US stock prices fell again on Tuesday, adding to the biggest selloff in months, with investors rattled over increased tariffs on imports and souring consumer sentiment.
"Fears of a US recession, weakness in US stock markets and concerns over tariffs affecting key oil players such as China, introduced additional market uncertainty and these factors could continue to fuel a bearish sentiment, putting a lid on oil prices," said Hassan Fawaz chairman and founder of brokerage GivTrade.
US President Donald Trump's economic policies so far have centered on a blitz of tariff announcements. Some have taken effect and others have been delayed or are set to kick in later.
Markets worry that tariffs could raise prices for businesses, boost inflation and undermine consumer confidence in a blow to economic growth.
Over the weekend, Trump said a "period of transition" was likely and declined to rule out a US recession.
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.
"Overall sentiment remains fragile despite a slight bounce in today's session," said Yeap Jun Rong, market strategist at IG.
"For now, oil market sentiments are likely to stay contained, with tariff developments still lacking clarity and persistent concerns over US growth risks," Yeap added.
On the supply side, 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.
In the US, crude oil stockpiles rose by 4.2 million barrels in the week ended March 7, while gasoline inventories fell by 4.6 million barrels, market sources said, citing American Petroleum Institute figures on Tuesday.
Markets now await government data on US stockpiles due on Wednesday for further trading cues.
