Oil prices plunged more than 1% on Wednesday as rising US inventories and concerns about a renewed Sino-US trade war stoked fears of weaker economic growth, offsetting a renewed push by US President Donald Trump to eliminate Iranian crude exports.

Brent crude futures fell 92 cents, or 1.21%, to $75.28 a barrel by 1210 GMT. US West Texas Intermediate (WTI) crude futures fell 86 cents, or 1.18%, to $71.84.

Crude prices traded in a wide range on Tuesday, with WTI falling at one point as much as 3% to its lowest since December 31 after China announced tariffs on US oil, liquefied natural gas and coal imports in retaliation for US levies on Chinese exports.

However, oil prices rebounded after Trump reimposed the "maximum pressure" campaign against Iran to curb its nuclear program that he imposed during his first term, which has slashed Iran's crude exports to near zero.

Ongoing trade tensions between the U.S. and China could reduce oil demand, putting downward pressure on oil prices.

"Trump's tariff chaos and trade war are not good for global growth and oil demand growth. Business investment and consumer spending are likely to fall in the face of these highly erratic actions and have a negative impact on growth," said Bjarne Schieldrop, chief commodity analyst at SEB.

"The oil market is now caught between growing fears that an escalating trade war will hurt global oil demand growth on the one hand and the possibility of a sudden disruption to Iran's oil exports," he added.

Iran's oil minister said that imposing unilateral sanctions on crude producers would disrupt energy markets, the ministry's SHANA news agency reported. (Newsmaker)

Source: Investing.com