Oil prices fall as Trump escalates trade war with China

Oil prices fell around 1% on Thursday as U.S. President Donald Trump ramped up a trade war with China, even as he announced a 90-day pause on tariffs aimed at other countries.

Brent futures fell 73 cents, 1.1%, to $64.73 a barrel by 01:08 a.m. GMT, while U.S. West Texas Intermediate crude futures lost 49 cents, or 0.8%, to $61.86.

The benchmarks had settled 4% higher on Wednesday after dropping as much as 7% during the session.

Trump raised the tariff rate for China to 125%, effective immediately, from the previously announced 104% tariff that had kicked off earlier on Wednesday.

China also announced an additional import levy on U.S. goods, imposing an 84% tariff from Thursday.

Meanwhile, U.S. crude inventories rose by 2.6 million barrels in the week to April 4, the Energy Information Administration said, nearly double the expectations in a Reuters poll for a 1.4-million-barrel rise.

The Keystone oil pipeline from Canada to the United States remained shut on Wednesday following an oil spill near Fort Ransom, North Dakota, while plans to return it to service were being evaluated, its operator South Bow said.