Oil up on weak dollar but tariff concerns cap gains

Jeslyn Lerh

Tue, Mar 11, 2025, 6:38 PM 2 min read

By Jeslyn Lerh

SINGAPORE (Reuters) - Oil prices edged up connected Wednesday, buoyed by a weaker dollar, but mounting fears of a U.S. economical slowdown and the interaction of tariffs connected planetary economical maturation capped gains.

Brent futures roseate 13 cents, oregon 0.2%, to $69.69 a tube astatine 0730 GMT, portion U.S. West Texas Intermediate crude futures gained 13 cents, oregon 0.2%, to $66.38 a barrel.

Despite the weakening economical outlook, lipid held dependable successful a affirmative position, said Daniel Hynes, elder commodity strategist astatine ANZ. "That's a motion that near-term request for crude remains strong," helium said.

The dollar index, which fell 0.5% to caller 2025 lows connected Tuesday, boosted lipid prices by making crude little costly for buyers holding different currencies. [USD/]

"Easing dollar counters the bearish bias of planetary economical slowdown, though this seems short-lived," said Priyanka Sachdeva, elder marketplace expert astatine Phillip Nova.

U.S. banal prices, which besides power the lipid market, fell again connected Tuesday, adding to the biggest selloff successful months, with investors rattled implicit accrued tariffs connected imports and souring user sentiment.

"Overall sentiment remains fragile contempt a flimsy bounce successful today's session," said Yeap Jun Rong, marketplace strategist astatine IG.

"For now, lipid marketplace sentiments are apt to enactment contained, with tariff developments inactive lacking clarity and persistent concerns implicit U.S. maturation risks," Yeap added.

U.S. President Donald Trump's protectionist policies person shaken planetary markets. He has imposed, past delayed tariffs connected large lipid suppliers Canada and Mexico, portion besides raising duties connected China, prompting retaliatory measures.

Over the weekend, Trump said a "period of transition" was apt and declined to regularisation retired a U.S. recession.

In supply, U.S. crude lipid accumulation is poised to acceptable a larger grounds this twelvemonth than anterior estimates, astatine an mean 13.61 cardinal barrels per day, the U.S. Energy Information Administration said connected Tuesday.

Investors are waiting for U.S. ostentation information owed connected Wednesday for clues connected the way of involvement rates. They besides are intimately monitoring OPEC+ plans. The shaper radical has announced plans to summation output successful April.

In the U.S., crude lipid stockpiles roseate by 4.2 cardinal barrels successful the week ended March 7, marketplace sources said, citing American Petroleum Institute figures connected Tuesday.

Markets present await authorities information connected U.S. stockpiles owed connected Wednesday for further trading cues.

(Reporting by Nicole Jao successful New York and Jeslyn Lerh successful Singapore; Editing by Himani Sarkar, Jamie Freed and Michael Perry)