Oil prices rose sharply in Asian trade on Thursday, rebounding from multi-year lows as the U.S. offering some concessions on recent tariffs helped lift risk appetite.

But traders remained on edge over increased U.S. trade tariffs on China, Canada, and Mexico, as well as growing expectations of higher oil supplies, after the Organization of Petroleum Exporting Countries and allies (OPEC+) agreed to increase production this week.

Hopes of more stimulus measures in top importer China offered some support to oil markets, although the country's economic outlook remained clouded by a brewing trade war.

Brent oil futures expiring in May rose 0.5% to $69.66 a barrel, while West Texas Intermediate crude futures rose 0.5% to $66.25 a barrel by 20:29 ET (01:29 GMT).

Brent hit its lowest level since December 2021, while WTI hit a near one-year low, as data showed a bigger-than-expected build in U.S. oil inventories, which added to concerns that U.S. fuel demand was cooling.

Oil markets relieved by some US tariff exemptions

Oil markets, along with broader financial markets, took some relief from U.S. President Donald Trump offering concessions to automakers from his recent 25% tariffs against Mexico and Canada. Trump said automakers will receive a one-month period to adjust to the tariffs.

Other reports showed Trump was also considering exemptions for agricultural goods such as potash and fertilizers.

The exemptions offered some relief to markets, in hopes that the economic impact of Trump's tariffs will be less severe than initially expected.

Traders were also betting that Trump will scale back the tariffs amid internal and external resistance.

Source: Investing.com