March 12 (Reuters) - Oil prices edged up on Wednesday,

supported by a weaker dollar, but gains were capped by mounting

fears of a U.S. economic slowdown and the impact of tariffs on

global economic growth.

Brent futures rose 37 cents, or 0.53%, to $69.93 a

barrel at 0951 GMT, while U.S. West Texas Intermediate crude

futures gained 37 cents, or 0.53%, to $66.62 a barrel.

Crude has been supported in recent days by a weaker U.S.

dollar and the Energy Information Administration (EIA) moving

away from earlier calls of strongly oversupplied oil markets

this year, UBS analyst Giovanni Staunovo.

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.

"Easing dollar counters the bearish bias of global economic

slowdown, although this seems short-lived," said Priyanka

Sachdeva, senior market analyst at Phillip Nova.

U.S. stock prices fell again on Tuesday, adding to the

biggest selloff in months, with investors rattled over increased

tariffs on imports and souring consumer sentiment.

"Fears of a U.S. recession, weakness in U.S. stock markets

and concerns over tariffs affecting key oil players such as

China, introduced additional market uncertainty and these

factors could continue to fuel a bearish sentiment, putting a

lid on oil prices," said Hassan Fawaz chairman and founder of

brokerage GivTrade.

U.S. President Donald Trump's economic policies so far have

centered on a blitz of tariff announcements. Some have taken

effect and others have been delayed or are set to kick in later.

Markets worry that tariffs could raise prices for

businesses, boost inflation and undermine consumer confidence in

a blow to economic growth.

Over the weekend, Trump said a "period of transition" was

likely and declined to rule out a U.S. recession.

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.

"Overall sentiment remains fragile despite a slight bounce

in today's session," said Yeap Jun Rong, market strategist at

IG.

"For now, oil market sentiments are likely to stay

contained, with tariff developments still lacking clarity and

persistent concerns over U.S. growth risks," Yeap added.

On the supply side, 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.

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

barrels in the week ended March 7, while gasoline inventories

fell by 4.6 million barrels, market sources said, citing

American Petroleum Institute figures on Tuesday.

Markets now await government data on U.S. stockpiles due on

Wednesday for further trading cues.