Oil prices experienced a slight increase on Wednesday, supported by a weaker dollar, although concerns about a potential U.S. economic slowdown and the implications of tariffs on global economic growth limited the rise. Brent crude futures climbed by 13 cents, or 0.2%, to $69.69 a barrel at 0730 GMT, while U.S. West Texas Intermediate crude futures saw a similar gain of 13 cents, reaching $66.38 a barrel.
Despite a deteriorating economic outlook, oil prices have remained relatively stable, suggesting that near-term demand for crude is still robust, according to Daniel Hynes, a senior commodity strategist at ANZ. The decline of the dollar index, which dropped 0.5% and hit its lowest levels since 2025, played a role in this price increase by making crude oil cheaper for international buyers.
Market analysts express cautious optimism. Priyanka Sachdeva, a senior analyst at Phillip Nova, remarked that easing dollar values help to counterbalance the pessimistic outlook resulting from global economic slowdowns, though she believes this shift may be temporary.
Concurrently, U.S. stock prices have faltered, marking the most significant selloff in several months as investors reacted negatively to increased tariffs and waning consumer sentiment. Yeap Jun Rong, a market strategist at IG, noted that market conditions remain fragile.
Despite a brief recovery in prices, uncertainties around tariffs and ongoing concerns regarding U.S. economic prospects are likely to keep sentiments restrained. In the backdrop, U.S. President Donald Trump’s trade policies have introduced volatility in global markets, affecting major oil suppliers like Canada and Mexico, as well as instigating increased duties on imports from China.
Furthermore, the U.S. Energy Information Administration reported that U.S. crude oil production is expected to hit new records this year, averaging 13.61 million barrels per day. As investors await U.S. inflation data and closely observe OPEC+ plans, the market looks towards government reports on stockpiles for further trading guidance.
Recent figures indicate that U.S. crude oil inventories rose by 4.2 million barrels in the week ending March 7, highlighting the ongoing shifts in supply dynamics.