Oil edges higher, but recession fears and tariffs limit gains

Oil prices rose less than 1% on Tuesday, helped by weakness in the dollar, although gains were capped as concerns mounted over a U.S. slowdown and the impact of tariffs on global economic growth.

Brent crude futures rose 56 cents, or 0.8%, to $69.84 a barrel by 10:43 a.m. EDT (1423 GMT) after falling as low as $68.63 in early trade. U.S. West Texas Intermediate crude futures gained 53 cents, or 0.8%, to $66.56 a barrel after previous declines as well.

"That kind of drama is adding to the volatility here," said Phil Flynn, senior analyst with the Price Futures Group.

Trump's protectionist policies have shaken global markets, imposing and delaying tariffs on major oil suppliers Canada and Mexico, while also raising duties on China, prompting retaliatory measures.

Over the weekend, Trump said a "period of transition" was likely and declined to rule out a U.S. recession.

Stocks, which crude prices often follow, extended their decline after slumping on Monday with the S&P 500 , opens new tab posting its biggest one-day drop since December 18 and the Nasdaq sliding 4.0%, its biggest single-day percentage drop since September 2022.

Investors await U.S. inflation data due on Wednesday for clues on the path of interest rates.

Meanwhile, investors are closely monitoring OPEC+ plans after the producer group announced plans to increase output in April.