SINGAPORE- 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 percent, at $69.69 a barrel, while US West Texas Intermediate crude (WTI) futures climbed 39 cents, or 0.59 percent, to $66.70 a barrel.
Brent plunged 6.5 percent in the previous four sessions, dropping to its lowest since December 2021 on Wednesday, while WTI fell 5.8 percent 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 stabilize from oversold territory,” said Yeap Jun Rong, market strategist at trading platform IG.
“However, recovery momentum remains fragile, with unfavorable supply-demand dynamics being a key overhang for bullish sentiment,” he added.
Prices fell after the US 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.
The decline eased as the US said it will exempt automakers from the 25 percent tariffs, raising optimism the impact of the trade dispute may be mitigated.
