Oil prices fell in Asian trade on Thursday, extending losses amid uncertainty over how U.S. President Donald Trump's proposed tariffs and energy policies will affect global economic growth and energy demand.

Brent crude futures fell 38 cents, or 0.5%, to $78.62 a barrel by 0716 GMT for a sixth straight day of losses, while U.S. West Texas Intermediate (WTI) crude fell for a fifth day, down 39 cents, or 0.5%, to $75.05.

"The oil market has given back some of its recent gains on a combination of factors," said Priyanka Sachdeva, senior market analyst at Phillip Nova. "Key factors include expectations of higher U.S. production under President Trump's pro-drilling policy and easing geopolitical tensions in Gaza, allaying fears of further escalation in supply disruptions from key producing regions." The broader economic implications of U.S. tariffs could further hurt global oil demand growth, he added.

Trump has said he will add new tariffs to his threat of sanctions on Russia if it does not reach a deal to end its war in Ukraine, adding that these could also be applied to "other participating countries."

He has also vowed to hit the European Union with tariffs, imposing 25% tariffs on Canada and Mexico, and said his administration is discussing 10% punitive duties on China for fentanyl being shipped to the United States from there.

On Monday, he also declared a national energy emergency, which is intended to give him the authority to ease environmental restrictions on energy infrastructure and projects and ease permitting for new transmission infrastructure and pipelines.

There is "potential for more volatile downside moves in the oil market in the near term given the Trump administration's lack of clarity on trade tariffs and higher U.S. oil supply to come as it pushes to become a major oil exporter," OANDA senior market analyst Kelvin Wong said in an email.

On the U.S. oil front, crude inventories rose by 958,000 barrels in the week to Jan. 17, sources said, citing American Petroleum Institute figures on Wednesday.

Gasoline inventories rose by 3.23 million barrels, and distillate stocks rose by 1.88 million barrels, they said.

Source: Investing.com