Oil rebounds towards 67 dollars but demand fears cap gains

Oil futures moved higher towards 67 dollars per barrel on Thursday, supported by a sharp decline in the US dollar, which touched a four-month low near 104. The weakness in the dollar helped boost overall commodities, including crude. MCX March oil futures were up more than 1 percent at Rs 5827 per barrel. Traders also found some relief as US officials hinted at the possibility of removing tariffs on Canadian energy imports. However, the overall mood stayed cautious as worries over global demand persisted, driven by US tariffs, retaliatory measures, and OPEC+ increasing output. Fresh EIA data showing a larger-than-expected rise in US crude inventories added to concerns of oversupply, while signs of weaker US demand emerged with waterborne crude imports falling to a four-year low.

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