Oil gained as the US cut its forecast for global oversupply while traders continued to assess the wider outlook for economic growth after a recent slump in equities.

Brent crude rose around $70 a barrel after a modest gain on Tuesday, while West Texas Intermediate was just below $67. The Energy Information Administration slashed its prediction for a surplus for this year and halved its outlook for a glut in 2026, citing the prospect of diminished flows from Iran and Venezuela.

Crude recouped early losses on Tuesday even as fresh trade salvos from US President Donald Trump threatened to prolong a plunge in risk assets. Futures have fallen from a high in mid-January on the chaotic rollout of tariffs, OPEC+ plans to add supply and weakening demand in China.

Source: FINANCE.YAHOO