Oil prices rose slightly early Wednesday morning, supported by a weaker dollar, but growing concerns over a slowdown in the U.S. economy and the impact of tariffs on global economic growth limited the gains.
اضافة اعلان
Brent crude futures rose by 27 cents, or 0.39%, to $69.03 per barrel at 01:01 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 29 cents, or 0.44%, to $66.54 per barrel.
Despite weaker economic forecasts, oil remained stable in a positive position, according to Daniel Hynes, senior commodity strategist at ANZ Bank. He added, "This is a sign that demand for crude oil is still strong in the short term."
The U.S. dollar index, which dropped by 0.5% to its lowest level of 2025 on Tuesday, helped support oil prices by making crude cheaper for buyers holding other currencies.
However, U.S. stock prices, which also affect the oil market, fell again on Tuesday, adding to the largest sell-off in months, as investors were concerned about increased tariffs on imports and deteriorating consumer sentiment.
Trump's protectionist policies have shaken global markets. He imposed tariffs on major oil suppliers, Canada and Mexico, then postponed their implementation, while raising tariffs on China, prompting retaliatory actions.
Over the weekend, Trump stated that the U.S. is likely to go through a "transitional period," rejecting the idea of an economic recession.
Regarding supply, U.S. crude oil production is expected to hit a record high this year, surpassing previous estimates, averaging 13.61 million barrels per day, according to the U.S. Energy Information Administration on Tuesday.
Investors are awaiting U.S. inflation data scheduled for release on Wednesday to get indications on the path of interest rates. They are also closely monitoring OPEC+ plans, which have announced intentions to increase production in April.
In the U.S., crude oil inventories rose by 4.2 million barrels for the week ending March 7, according to market sources citing data from the American Petroleum Institute released on Tuesday. Investors are now awaiting U.S. government data on inventories, due on Wednesday, for further trading indications. -(Agencies)
