Oil costs rise on weak greenback, however considerations over tariff affect cap beneficial properties

By Nicole Jao

(Reuters) – Oil costs edged up early on Wednesday, helped by a weaker greenback, however mounting fears of a U.S. financial slowdown and the affect of tariffs on world financial progress capped beneficial properties.

Brent futures rose 27 cents, or 0.39%, to $69.83 a barrel at 0110 GMT, whereas U.S. West Texas Intermediate crude futures gained 29 cents, or 0.44%, to $66.54 a barrel.

Regardless of the weakening financial outlook, oil held regular in a constructive place, Daniel Hynes, senior commodity strategist at ANZ stated. “That is an indication that near-term demand for crude stays sturdy.”

The greenback index, which fell 0.5% to recent 2025 lows on Tuesday, boosted oil costs by making crude cheaper for consumers holding different currencies. [USD/]

However U.S. inventory costs, which additionally affect the oil market, fell once more on Tuesday, including to the most important selloff in months, with traders rattled over elevated tariffs on imports and souring shopper sentiment.

Trump’s protectionist insurance policies have shaken world markets. He has imposed, then delayed tariffs on main oil suppliers Canada and Mexico, whereas additionally elevating duties on China, prompting retaliatory measures.

Over the weekend, Trump stated a “interval of transition” was possible and declined to rule out a U.S. recession.

In provide, U.S. crude oil manufacturing is poised to set a bigger report this 12 months than prior estimates, at a mean 13.61 million barrels per day, the U.S. Vitality Data Administration stated on Tuesday.

Buyers are ready for U.S. inflation information due on Wednesday for clues on the trail of rates of interest. In addition they are intently monitoring OPEC+ plans. The producer group has introduced plans to extend output in April.

Within the U.S., crude oil stockpiles rose by 4.2 million barrels within the week ended March 7, market sources stated, citing American Petroleum Institute figures on Tuesday.

Buyers now await authorities information on U.S. stockpiles, due on Wednesday, for additional buying and selling cues.

(Reporting by Nicole Jao in New York; Enhancing by Himani Sarkar)