Singapore: Oil prices edged higher on Wednesday, driven by optimistic outlooks for summer fuel demand in the United States and China, even as broader economic concerns linger.

Market volatility persisted within a narrow trading range, as increasing travel activity during the Northern Hemisphere’s peak season supported prices, while worries about US tariffs potentially dampening economic growth kept gains in check.

Brent crude futures rose by 36 cents, or 0.5%, reaching $69.07 per barrel by 8:46 a.m. Saudi time. Meanwhile, US West Texas Intermediate (WTI) crude futures gained 47 cents, or 0.9%, to $66.99.

This uptick reversed recent declines, with traders brushing off fears of supply disruptions after US President Donald Trump threatened tariffs on Russian oil imports.

Oil producers and analysts remain cautiously optimistic, citing signs of improved economic activity in the latter half of the year. China’s latest data indicated resilient growth, with crude throughput in June increasing by 8.5% year-over-year, reflecting robust domestic demand. Despite a slowdown in second-quarter growth, China’s economic indicators were less dire than expected, partly due to preemptive purchasing ahead of potential US tariffs.

“Seasonal factors, notably increased travel and industrial activity during summer, are supporting upward momentum in oil prices,” said analysts at LSEG. “Increased gasoline consumption, especially during the US Fourth of July holiday period, signals strong fuel demand, offsetting bearish signals from rising inventories and tariff worries.”

However, some market experts caution that the recent price rebound may be short-lived amid ongoing economic uncertainties and geopolitical tensions.