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Investing.com - Oil prices jumped on Wednesday, extending earlier gains that were powered by a weaker U.S. dollar, although persistent concerns over the impact of tariffs on global demand limited the uptick.
By 11:00 ET (15:00 GMT), Brent futures had gained 1.8% to $70.83 per barrel, while U.S. West Texas Intermediate crude futures had climbed by 2.1% to $67.65 a barrel.
The greenback hovered around a five-month low against several major currency pairs, with investors pouring through trade tensions and a possible Russia-Ukraine ceasefire deal.
A weakening in the dollar can provide a lift for oil prices because it in theory makes crude less expensive for buyers holding foreign currencies.
But worries over global oil demand due to U.S. President Donald Trump’s plans to impose tariffs on friends and adversaries alike have capped a rally in crude prices.
Although signs of easing inflationary pressures in the U.S. gave a boost to sentiment, analysts have flagged that the Trump’s levies could still push up prices in the months ahead.
Elsewhere, the Organization of the Petroleum Exporting Countries backed its forecast for relatively solid growth in oil demand this year, noting that air and road travel would help drive consumption higher.
The report from the oil producer group added that while the trade fears will lead to volatility, the "global economy is expected to adjust" to them.
Output by the wider OPEC+ group, which includes allies like Russia, also rose by 363,000 barrels per day in February.
Meanwhile, U.S. crude oil production this year is set to post a blow past a prior estimates, according to the U.S. Energy Information Administration on Tuesday. Further government data on U.S. stockpiles is due out on Wednesday.
(Reuters and Ambar Warrick contributed reporting.)