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Crude benchmarks Brent, WTI rise 1%

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Benchmarks closed 1.5% lower in previous session

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Dollar index hits four-month low

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Concerns over U.S. recession and tariffs limit crude gains

(Updates prices at 1116 GMT)

By Arunima Kumar

March 11 (Reuters) - Oil prices rose 1% on Tuesday,

helped by weakness in the U.S. dollar, although gains were

capped as concerns mounted over a U.S. slowdown and the impact

of trade tariffs on global economic growth.

Brent futures rose 73 cents, or 1.05%, to stand

at$70.01 a barrel at 1116 GMT after falling in early trade. U.S.

West Texas Intermediate crude futures climbed 66 cents,

or 1%, to $66.69 a barrel after previous declines as well.

Both benchmarks closed 1.5% lower in the previous session.

The dollar index hit a four-month low, making oil

less expensive for overseas buyers.

Investors are closely monitoring OPEC+ plans after the

producer group announced plans to increase output in April.

A scaling back of U.S. tariffs would ease fears of inflation

and economic contraction, said PVM analyst Tamas Varga, but the

recent oil price plunge meant it was "hard to see OPEC+ going

ahead with its plan and releasing oil back to the market from

April."

On Friday, Russia's Deputy Prime Minister Alexander Novak

told reporters that the OPEC+ producer group would go ahead with

its April increase but may then consider other steps, including

reducing production.

Brent is finding strong technical support at around $70 a

barrel and may look to stage a bounce, said Suvro Sarkar, energy

sector team lead at DBS Bank, adding that the OPEC+ supply

response would be flexible, depending on market conditions.

"If oil prices fall below the $70 per barrel mark for an

extended period, output hikes may be paused in our opinion.

OPEC+ will also keep a careful eye on Trump's Iran and Venezuela

policies," he said.

U.S. President Donald 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, slumped on Monday,

with all three major U.S. indexes suffering sharp declines. The

S&P 500 had its biggest one-day drop since December 18

and the Nasdaq slid 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.

In the U.S., crude oil stockpiles were expected to have

risen last week, while distillate and gasoline inventories

likely fell, a preliminary Reuters poll showed on Monday.

The poll was conducted ahead of reports from the American

Petroleum Institute at 4:30 p.m. EDT Tuesday and the Energy

Information Administration at 10:30 a.m. EDT Wednesday.