March 12 (Reuters) - Oil prices edged up early on

Wednesday, helped by a weaker dollar, but mounting fears of a

U.S. economic slowdown and the impact of tariffs on global

economic growth capped gains.

Brent futures rose 27 cents, or 0.39%, to $69.83 a

barrel at 0110 GMT, while U.S. West Texas Intermediate crude

futures gained 29 cents, or 0.44%, to $66.54 a barrel.

Despite the weakening economic outlook, oil held steady in a

positive position, Daniel Hynes, senior commodity strategist at

ANZ said. "That's a sign that near-term demand for crude remains

strong."

The dollar index, which fell 0.5% to fresh 2025 lows

on Tuesday, boosted oil prices by making crude less expensive

for buyers holding other currencies.

But U.S. stock prices, which also influence the oil market,

fell again on Tuesday, adding to the biggest selloff in months,

with investors rattled over increased tariffs on imports and

souring consumer sentiment.

Trump's protectionist policies have shaken global markets.

He has imposed, then delayed 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.

In supply, U.S. crude oil production is poised to set a

larger record this year than prior estimates, at an average

13.61 million barrels per day, the U.S. Energy Information

Administration said on Tuesday.

Investors are waiting for U.S. inflation data due on

Wednesday for clues on the path of interest rates. They also are

closely monitoring OPEC+ plans. The producer group has announced

plans to increase output in April.

In the U.S., crude oil stockpiles rose by 4.2 million

barrels in the week ended March 7, market sources said, citing

American Petroleum Institute figures on Tuesday.

Investors now await government data on U.S. stockpiles, due

on Wednesday, for further trading cues.