Oil prices edged up on Wednesday, buoyed by a weaker dollar, but mounting fears of a U.S. economic slowdown and the impact of tariffs on global economic growth capped gains.
Brent futures rose 51 cents, or 0.7%, to $70.07 a barrel at 0430 GMT, while U.S. West Texas Intermediate crude futures gained 52 cents, or 0.8%, to $66.77 a barrel.
Despite the weakening economic outlook, oil held steady in a positive position, said Daniel Hynes, senior commodity strategist at ANZ.
“That’s a sign that near-term demand for crude remains strong.” The dollar index (.DXY), opens new tab, which fell 0.5% to fresh 2025 lows on Tuesday, boosted oil prices by making crude less expensive for buyers holding other currencies.
“Easing dollar counters the bearish bias of global economic slowdown, although this seems short-lived,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
U.S. stock prices, which also influence the oil market, fell again on Tuesday, adding to the biggest selloff in months, with investors rattled over increased tariffs on imports and souring consumer sentiment.
