Economy Insights – Follow-up
Oil prices experienced a modest increase early today, reflecting fluctuations in the dollar’s value. However, persistent concerns regarding a potential slowdown in the U.S. economy and the implications of tariffs on global economic growth have tempered these gains.
By 03:10 GMT, Brent crude futures had increased by 44 cents, reaching $70 per barrel, while U.S. West Texas Intermediate crude futures rose by 47 cents to $66.72 per barrel.
The increase in oil prices can be attributed to a 0.5% decline in the dollar against a basket of major currencies, marking its lowest level since 2025 on Tuesday. This depreciation makes crude oil more affordable for buyers dealing in other currencies.
On the other hand, U.S. stock prices, which significantly influence the oil market, faced another decline on Tuesday, contributing to the largest selling wave seen in months. Investors are expressing concerns about the potential for increased tariffs on imports and a downturn in consumer confidence.
Recent protective policies have rattled global markets, particularly those imposed by the U.S., which included tariffs on major oil suppliers such as Canada and Mexico, although their application has since been postponed. Additionally, elevated tariffs on China have prompted retaliatory measures, further complicating trade relationships.
Commenting on the current economic situation, the President indicated the likelihood of a “transitional period,” and did not discount the possibility of an economic recession within the U.S.
In a report released by market sources referring to the American Petroleum Institute, U.S. crude oil inventories rose by 4.2 million barrels for the week ending March 7.
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