Oil prices rose on Thursday after heavy sell-offs drove the market to a multi-year low, however tariff uncertainties and a rising supply outlook capped gains.
Brent futures were trading up 39 cents, or 0.56%, at $69.69 a barrel by 0416 GMT, while U.S. West Texas Intermediate crude (WTI) futures climbed 39 cents, or 0.59%, to $66.70 a barrel.
Brent plunged 6.5% in the previous four sessions, dropping to its lowest since December 2021 on Wednesday, while WTI fell 5.8% over the same period to its lowest since May 2023.
“The sharp dip in oil prices below the key $70.00 level may prompt a slight breather in today’s session, as technical conditions attempt to stabilise from oversold territory,” said Yeap Jun Rong, market strategist at trading platform IG.
“However, recovery momentum remains fragile, with unfavourable supply-demand dynamics being a key overhang for bullish sentiment,” he added.
Prices fell after the U.S. enacted tariffs on Canadian and Mexican goods, including energy imports, at the same time major producers decided to raise output quotas for the first time since 2022.
