Oil prices surge in International market

Oil prices saw a slight increase on Wednesday morning in the international market, supported by a weaker dollar. However, concerns over a potential US economic slowdown and the impact of tariffs on global growth tempered the gains.

Brent crude futures edged up by 27 cents (0.39%) to $69.83 per barrel at 0110 GMT, while US West Texas Intermediate (WTI) crude rose by 29 cents (0.44%) to $66.54 per barrel.

Despite economic uncertainty, oil prices remained stable, reflecting strong short-term demand for crude, according to Daniel Hynes, senior commodity strategist at ANZ.

The dollar index (.DXY) dropped 0.5% on Tuesday to fresh 2025 lows, making oil cheaper for buyers using other currencies and providing support to crude prices.

However, US stock markets continued to slide, extending the biggest selloff in months. Investor sentiment remained shaky due to increased tariffs on imports and weakening consumer confidence.

The global market remains on edge over Trump’s protectionist policies. The US president has imposed—and later postponed—tariffs on key oil suppliers like Canada and Mexico while escalating trade tensions with China, prompting retaliatory measures. Over the weekend, Trump hinted at a “period of transition” and did not rule out the possibility of a US recession.

On the supply side, US crude oil production is expected to set a new record this year, averaging 13.61 million barrels per day, according to the US Energy Information Administration (EIA).

Investors are now awaiting key US inflation data set to be released on Wednesday for further signals on interest rate trends. Additionally, they are closely watching OPEC+ plans, as the group has announced an output increase in April.

Meanwhile, US crude oil stockpiles rose by 4.2 million barrels in the week ending March 7, according to market sources citing American Petroleum Institute (API) data.